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Grazing Administration--Exclusive of Alaska

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 [Federal Register: July 12, 2006 (Volume 71, Number 133)]
[Rules and Regulations]
[Page 39451-39500]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12jy06-18]
 
[[pp. 39451-39500]]

Grazing Administration--Exclusive of Alaska

[[Continued from page 39450]]

[[Page 39451]]

not become an ``undertaking'' with the potential to affect historic 
properties as defined in the regulations. The regulations established 
by the Advisory Council for Historic Preservation make clear that once 
an agency determines there is no undertaking, or that its undertaking 
has no potential to affect historic properties, the agency has no 
further Section 106 obligations.
    Other comments stated that emphasis on considerations such as the 
social, economic, and cultural effects of agency decisions that change 
levels of grazing preference would have adverse impacts on natural 
resources, leading to degradation of the public lands. Comments stated 
that improving working relationships with grazing permittees and 
lessees would tend to weaken the ability of BLM to manage rangelands in 
a timely fashion by adding considerable time before action can be 
taken. One comment stated that BLM should have working relationships 
with the public, not just ranchers. Another accused BLM of appeasing 
ranchers and increasing the level of environmental damage.
    We have not materially changed current policy with regard to the 
consideration of social, economic, and cultural impacts of decisions in 
the grazing program. We currently consider the social, economic, and 
cultural effects of actions that change grazing use levels, as well as 
other aspects of grazing operations in the NEPA process. The main 
difference is that, under these changes to the regulations at section 
4110.3(c), BLM will more consistently document these considerations. 
This change in the regulations will help improve consistency across the 
Bureau in the analysis of social, economic, and cultural impacts. The 
consistent documentation of these concerns does not come at the expense 
of protecting natural resources and maintaining healthy rangelands. 
Rather, it improves working relationships between BLM and ranchers by 
ensuring that social, economic and cultural impacts are analyzed and 
disclosed where appropriate. Since this provision requires no more 
analysis than current policy does, we anticipate few delays in the 
authorization and implementation of grazing management actions on 
public lands attributable to this provision.
    One comment urged BLM to include, in addition to the provision as 
proposed, provisions to require BLM to work closely with local planning 
departments, to include consultation, cooperation, and coordination 
with the grazing permittee or lessee, and state and local government in 
this section, and to give consideration to provision for local, state, 
and regional governance.
    Under 43 U.S.C. 1712(c)(9), 40 CFR 1500.4(n), 1501.2(d)(3), 
1501.7(a)(1), 1506.2(b), and Departmental Manual and BLM Handbook 1790, 
BLM is directed to coordinate to the degree feasible with state and 
local governments. BLM sees no need to reaffirm existing guidance on 
this aspect of planning and environmental analysis in this rule.
Section 4110.3-1 Increasing Active Use
    In keeping with the changes in the meanings of ``preference'' and 
``active use,'' in the proposed rule we amended the heading of this 
section to refer to active use and removed the term ``permitted use'' 
throughout. Because the provision affects how we regulate available 
forage, we asked the public to comment on whether BLM should use the 
term ``available forage'' instead of ``active use.''
    BLM also asked for specific comments on this section to help 
determine whether there have been situations in which the ability of 
permittees or lessees to obtain loans was adversely affected by having 
some of their forage allocation suspended.
    We proposed to reorganize this section to describe how we authorize 
increased grazing use when additional forage is available either 
temporarily, or on a sustained yield basis. BLM added two new 
paragraphs to clarify who has priority when we grant additional grazing 
use because livestock forage has become available on either a 
nonrenewable basis or a sustained yield basis.
    In the final rule we have added language in the introductory text 
of this section that makes it clear that decisions increasing active 
use are also based on monitoring or documented field observations, just 
as decisions decreasing active use must be. Changes in preference, 
whether increases or decreases, already must be supported by monitoring 
or documented field observations under section 4110.3.
    A number of comments raised issues relating to additional forage 
temporarily available. Before discussing the comments, we will briefly 
describe how BLM handles forage that is temporarily available.
    In conformance with land use plan multiple-use objectives and 
decisions, BLM may allocate additional forage that is temporarily 
available for use by livestock, and authorize its use on a nonrenewable 
basis. Because it is a temporary forage allocation, the action of 
authorizing such use does not increase active preference. BLM commonly 
refers to such temporary forage allocations as ``TNR,'' which stands 
for ``temporary and nonrenewable'' livestock grazing use. Before 
authorizing TNR livestock grazing use, either by issuing a nonrenewable 
grazing permit, or by temporarily modifying the grazing permit or lease 
of a preference operator, BLM ensures compliance with NEPA analysis 
requirements and documents that this action conforms to applicable land 
use planning decisions. BLM completes NEPA-required analysis either in 
response to a specific circumstance following an application for 
additional use, or by completing a regionally-based analysis, in 
anticipation of applications, that specifies natural resource and 
weather-based criteria or thresholds that must be met or crossed, as 
well as other conditions that must be met before BLM will authorize TNR 
livestock grazing use.
    We have not changed the regulations in response to these comments, 
which we discuss below.
    BLM received numerous comments asking that a permittee's or 
lessee's stewardship efforts be included as criteria for determining who 
is to receive temporary, as well as permanent, increases in grazing use.
    Additional forage that is temporarily available most often occurs 
in years when favorable growing conditions result in above-average 
forage production. Although stewardship efforts can contribute to 
additional forage for livestock that is temporarily available, BLM 
believes that in most cases, it would be difficult to ascertain the 
role of stewardship versus the role of good growing conditions in 
contributing to the increase. Therefore, requiring BLM to consider and 
reward this role would be impractical.
    One comment asserted that only existing permittees and lessees 
should be eligible for grants of additional forage for livestock when 
BLM finds that it is available under section 4110.3-1(b).
    Section 4110.3-1 provides that if BLM determines that there is 
additional forage available for livestock within an allotment, it will 
first be apportioned to remove any suspensions of that allotment's 
permittees or lessees, then to those permittees or lessees in 
proportion to their contributions to stewardship efforts that led to 
the increased forage production, then to those permittees and lessees 
in proportion to the amount of their grazing preference, then to other 
qualified applicants. The comment urges BLM to remove ``other qualified 
applicants'' from the list of possible

[[Page 39452]]

recipients of the forage increase. BLM believes that it would be a rare 
occasion when there would be an increase in forage available for 
livestock that would be made available, following satisfaction of the 
other requirements of this regulation, to ``other qualified 
applicants.'' Nonetheless, BLM sees no need for undue restrictions on 
who may receive this public benefit.
    One comment advocated that BLM should determine if additional 
forage is temporarily available only upon application by a qualified 
applicant. If, the comment went on, following such application, BLM 
finds additional forage to be temporarily available, we should be 
obliged to approve its use by the applicant, following consultation, 
cooperation, and coordination with the preference permittee or lessee.
    BLM generally responds to, rather than solicits, applications for 
TNR use. It is unnecessary to make it a regulatory provision that BLM 
can determine additional forage to be available only if a qualified 
applicant applies for it first. Most commonly, BLM receives 
applications for TNR use from the permittee or lessee with preference 
for use in the allotments where the forage is available. The 
regulations provide also that a person other than the preference 
permittee or lessee may apply for TNR use.
    One comment urged us to provide in this section that BLM must 
consult with wildlife agencies before temporarily, as well as 
permanently, increasing grazing use, so that they can effectively 
manage wildlife whose populations can be affected by grazing.
    As provided by section 4130.6-2, BLM is required to consult, 
cooperate, and coordinate with the preference permittee or lessee and 
the state having lands or responsibility for managing resources in the 
area prior to authorizing TNR use. Thus the state agencies responsible 
for managing wildlife resources will be consulted prior to a proposed 
decision for increases or decreases in active use as well as for TNR 
use. In addition, BLM will consult with state wildlife agencies as part 
of the process to develop the NEPA compliance documentation.
    One comment asked BLM to clarify in this section that additional 
forage will be, rather than may be, apportioned to qualified applicants 
consistent with land use plans.
    BLM retained the term ``may,'' rather than ``will,'' as it pertains 
to apportioning additional forage available for livestock grazing, in 
order to retain our complete discretion in this matter. The wording in 
the final rule reflects that in the pre-1995 provision. It means that 
BLM will not apportion additional forage temporarily available if there 
is no demand for it. (As to additional forage available on a sustained 
yield basis, on the other hand, the regulations state that BLM will 
first use it to end suspensions that were in place due to lack of 
forage. Any further apportionment of such forage, however, will occur 
only after consultation with the affected state agencies, permittees, 
lessees, and the interested public.)
    One comment interpreted changes in this section to mean that BLM 
could designate ephemeral or annual rangelands based on a finding that 
forage was temporarily available and allow BLM to approve grazing 
regardless of land use plan decisions and land conditions.
    A BLM determination that additional forage for livestock is 
available on a temporary basis does not serve to designate ephemeral or 
annual rangelands. BLM makes these determinations in land use plans.
    The next group of comments addressed increases generally. BLM made 
one change to the final regulations in response to these comments.
    One comment asked BLM to make it clear that section 4110.3-1(b)(2) 
refers only to forage available for livestock, so that the regulation 
is not interpreted to preclude allocations of additional forage 
available on a sustained yield basis to other uses.
    Section 4110.3-1 (b)(2) is within paragraph (b), which we have 
amended in this final rule by adding the word ``livestock,'' so that it 
states in part, ``When the authorized officer determines that 
additional forage is available for livestock use on a sustained yield 
basis, he will apportion it in the following manner * * *.'' BLM 
believes that this makes it clear that the forage being referred to is 
forage allocated to livestock through planning and decision processes, 
in contrast to, for example, forage that is allocated to wild horses 
and burros, or forage that is allocated to wildlife, using the same 
planning and decision processes.
    Another comment asked BLM to include assurances or a requirement 
that increased forage allocation to wildlife will result when wildlife 
organizations contribute to a project that increases available forage.
    The suggestion to provide assurances in this subpart that increased 
forage resulting from projects funded by wildlife organizations is 
outside of the scope of this rule. However, before agreeing to fund 
projects that will increase forage available on public lands, wildlife 
organizations are free to negotiate the terms under which to make such 
contributions, and to memorialize these arrangements through 
cooperative agreements with BLM and other project participants.
    Another comment urged BLM to establish criteria that must be met 
before preference can be increased.
    Regulatory criteria for making changes in grazing preference, 
including increases in preference, appear in section 4110.3(a). They 
include: to manage, maintain, or improve rangeland productivity; to 
assist in restoring ecosystems to properly functioning condition; to 
conform to land use plans or activity plans; or to comply with the 
provisions of subpart 4180.
    One comment urged BLM to provide permittees and lessees the right 
to ``petition'' for increased grazing use up to the limit of their 
preference, subject to its availability.
    Under previous and current regulations at section 4130.1-1, 
permittees and lessees have the right to apply for grazing use at 
whatever level they desire, regardless of preference. BLM's response to 
the application, however, will be guided by available resource 
information pertinent to the decision, be consistent with land use plan 
objectives and decisions, and comply with these grazing regulations.
    One comment stated that BLM should develop and demonstrate a 
process that would allow grazing to increase if monitoring shows that 
an increase is warranted.
     The section discussed in this portion of the preamble already 
contains, and this rule does not remove, procedures to allow grazing to 
be increased.
    One comment suggested that the interested public should be excluded 
from consultation, cooperation, and coordination under section 4110.3-
1(b)(2).
    We have not adopted this suggestion in the final rule. The 
allocation of additional livestock forage available on a sustained 
yield basis, after satisfaction of any suspension of preference of the 
permittee or lessee for the allotment where the additional forage is 
located, is considered a planning decision by BLM. Therefore, it is 
appropriate to consult, cooperate, and coordinate with the interested 
public, as well as affected permittees, lessees, and the state, before 
issuing a proposed decision allocating that additional livestock forage.
Section 4110.3-2 Decreasing Active Use
    Again, in this section we replaced the term ``permitted use'' with 
the term ``active use'' throughout. We also amended paragraph (a) to 
provide that BLM will document its observations

[[Page 39453]]

that support the need for temporary suspension of active use, and 
amended paragraph (b) to provide that BLM will place any reductions in 
active use made under this paragraph into suspension rather than 
require a permanent reduction.
    Several comments on this section stated that BLM should have the 
option to require that preference reductions made under section 4110.3-
2(b) be placed in ``nonuse'' rather than be suspended by BLM.
    BLM has not adopted this suggestion in the final rule. Adopting 
this suggestion would confound, rather than clarify, the management 
implications of the action of ``suspending'' active preference versus 
approving the ``nonuse'' of active preference.
    Before 1995, the grazing regulations provided that when active use 
was reduced, the amount reduced could be either ``held [by BLM]
in 
suspension or in nonuse for conservation/protection purposes.'' This 
pre-1995 terminology created 3 categories of preference: ``active,'' 
``suspended'' and ``nonuse for conservation/protection purposes.'' 
Having three categories of preference made it less clear under what 
management circumstances it was appropriate for BLM to suspend active 
use rather than ``hold'' nonuse (of active use) for conservation/
protection purposes. Further conceptual blurring was created by BLM 
policy, as stated in our handbook, that a permittee/lessee could 
annually apply and receive approval for nonuse of all or a part of his 
active use for reasons associated with personal or business needs, or 
for ``conservation and protection of the range,'' but this ``short-
term'' nonuse did not affect preference status. Based on the pre-1995 
regulations, there currently are some grazing permits and leases that 
list nonuse that is being ``held'' by BLM and which is included as a 
part of the total grazing preference. However, this nonuse, i.e., that 
portion of active use that was ``held in nonuse conservation/
protection'' under the pre-1995 regulations, is the practical 
equivalent of suspended preference as this term is used in this rule.
    This final rule intends to establish and clarify a distinction 
between ``suspended'' preference and ``nonuse'' of preference, thus:
    ? Suspended preference arises from an action initiated by 
BLM. BLM suspends preference when necessary to manage resources by 
decreasing active use under section 4110.3-1 or as a penalty action for 
grazing regulations violations under section 4170.1-1. In contrast, 
nonuse arises when BLM approves an application submitted by a grazing 
permittee or lessee not to use some or all of the active use authorized 
by a permit or lease under section 4130.4.
    ? Suspended preference is shown on the grazing permit or 
lease, and along with active use is part of the total grazing 
preference of the permittee or lessee. BLM does not issue a grazing 
permit or lease to authorize nonuse. The ``conservation use 
permitting'' provisions that allowed for this practice were disallowed 
by the 10th Circuit Court of Appeals in 1998 and are removed from the 
grazing regulations by this rule. As explained previously, because of 
the regulations that were in place before 1995, there is one exception 
to the statement that we do not issue grazing permits or leases that 
authorize nonuse. On some permits and leases, BLM still shows nonuse as 
a part of the total preference because pre-1995 regulations allowed 
reductions of active preference to be ``held in nonuse for 
conservation/protection purposes.'' However, this nonuse is the 
practical equivalent of suspended preference as clarified by this rule.
    ? BLM may suspend preference on a short-term basis, as may 
be needed, for example, to allow recovery of vegetation after a fire. 
BLM also may suspend preference for a longer term or indefinitely, as 
may be needed, for example, when BLM determines through monitoring that 
there is not enough livestock forage produced on a sustained yield 
basis to support the active use authorized by a permit or lease, and 
that forage production is not expected to be able to support that level 
of use for the foreseeable future. To receive BLM's approval for 
nonuse, permittees or lessees must apply for nonuse of some or all of 
the active use authorized by their permit or lease, prior to the start 
date of the grazing use period specified on their permit or lease. The 
BLM authorized officer authorizes the nonuse by approving the 
application, as indicated by his signature on the application. BLM will 
not approve of nonuse for longer than one year at a time, and will 
approve it only if we agree that nonuse is warranted for the reasons 
provided on the application.
    ? BLM must issue a grazing decision or be a party to a 
documented agreement to suspend preference. BLM records suspended 
preference on permits and leases and in operator case records for 
recordkeeping purposes, but suspended preference is not available for 
active use under the permit or lease. BLM need not issue a decision or 
have a documented agreement to approve nonuse. If BLM approves an 
application for nonuse for reasons of rangeland conservation, 
protection, or enhancement, or for personal or business needs, the 
permittee or lessee is precluded from using the amount of active use 
that has been approved for nonuse. BLM may subsequently approve a later 
application to make use of what had been approved as nonuse should 
circumstances change (e.g., moisture is received later in the season 
that increases forage production, thereby alleviating the need for 
nonuse for conservation reasons, or an operator purchases livestock 
mid-season and because of this can use forage that he previously could 
not because he did not own enough livestock).
    Suspended preference is a recordkeeping convention adopted by BLM. 
If, after the suspension, BLM determines that there is an increase in 
the amount forage available for livestock on a sustained yield basis, 
this record indicates who has priority for its use and in what amount. 
As explained above, due to the regulations in place before 1995, some 
permits and leases show ``nonuse'' as a part of the grazing preference. 
In actuality, this nonuse is equivalent to suspended use as the concept 
has been clarified by this rule.
    One comment requested that BLM not change the regulation and 
continue to provide that the active use that is reduced under this 
paragraph be terminated rather than suspended.
    We did not adopt this comment in the final rule. It is important to 
keep record of any reductions in active preference as ``suspended'' 
preference. It helps BLM to track, by allotment, permittee or lessee, 
and base property, the original livestock grazing use forage 
allocation, the attachment of that allocation to base property, and 
subsequent adjustments arising both from management actions to increase 
or reduce use, and from administrative actions such as preference 
transfers. Suspended preference is attached to base property, and is 
transferred along with active preference. This record facilitates BLM's 
ability to apply section 4110.3-1 to reinstate active use to permittees 
and lessees, upon a BLM determination that forage for livestock, in an 
amount that exceeds active preference, has become available on a 
sustained yield basis.
    Another comment asked that BLM cross-reference this paragraph to 
section 4110.3-1 in order to make it clear that activation of preference 
suspended under section 4110.3-2(b) would be governed by that section.
    BLM did not adopt this suggestion. BLM does not believe that cross-
referencing section 4110.3-1 in section 4110.3-2(b) is needed to ensure 
that it is understood that activation of

[[Page 39454]]

preference suspended under section 4110.3-2(b) is, in fact, governed by 
section 4110.3-1.
    One comment asked BLM to change the criteria that justifies a 
reduction of active use as described in Sec.  4110.3-2(b) from ``when 
monitoring or documented field observations show that grazing use or 
patterns of use are inconsistent with subpart 4180, or that grazing use 
is otherwise causing an unacceptable level or pattern of use, or that 
use exceeds livestock carrying capacity,'' to ``when monitoring shows 
that active use is inconsistent with objectives of the applicable land 
use plan, activity plan, or decision, or shows that active use exceeds 
the forage available on a sustained yield basis.'' This comment said 
that this change would clarify that land use plans governed actions 
that affected the amount of active use authorized.
    We have not adopted the comment in the final rule. BLM believes 
that these criteria are sufficiently clear to serve the purpose 
intended by the regulation. These criteria allow for the effects of 
grazing use to be measured against objectives tailored specifically to 
a local area, such as a single stretch of a riparian area, or an 
individual pasture, that may not be addressed in sufficient management 
detail in a land use plan, activity plan, or decision of the authorized 
officer. These local objectives would be consistent with the more 
general management objectives typically found in land use plans and 
activity plans. Moreover, section 4110.3(a) provides that BLM will 
change grazing preference as needed to conform to land use plans or 
activity plans.
    Another comment stated that because grazing use or patterns of use 
are by definition a part of monitoring, including them in Sec.  4110.3-
2(b) is redundant.
    BLM acknowledges that use of pattern mapping and measurement of 
utilization are a part of monitoring. The wording in the regulation, 
however, is not redundant. The regulation requires that when this 
information shows that grazing use levels or patterns of use are 
unacceptable, BLM will reduce active use, otherwise modify management 
practices, or both.
    One comment stated that BLM should provide for payment to the 
permittee or lessee for any cuts in permit numbers at the prevailing 
appraised rate in order to curtail cutting permits under the pretense 
of the ESA.
    It is not clear from the comment why it concluded that BLM paying a 
permittee or lessee for reductions in grazing use would curtail 
reductions made as a result of compliance with the requirements of the 
ESA. In any event, grazing permits and leases convey no right, title, 
or interest held by the United States in any lands or resources. 
Therefore, payment for reduced livestock use would be neither 
appropriate nor legally supportable.
    Finally, one comment stated that BLM should not reduce preference, 
and suggested that individual monitoring would provide the information 
needed to make grazing changes that would address management issues 
without having to reduce preference.
    We have not adopted the suggestion that BLM not be allowed to 
reduce preference. This would unduly restrict the statutory authority 
of the Secretary to manage grazing use on public lands. Depending on 
circumstances, there are management solutions to grazing issues that do 
not involve reducing preference. However, this is not always the case.
    One comment urged that, in case of fires in allotments, the 
allotment should be rested for a minimum of 3 years, and 5 years if any 
BLM permittee has livestock on a burn area prior to approval, plus a 
substantial reduction in their grazing permit.
    The issue of how much rest from livestock grazing is needed after a 
fire is a matter for internal guidance, and is outside the scope of 
this rule. Furthermore, prescribing rest periods for lands through the 
regulatory process does not allow site-specific analysis and 
consideration of on-the-ground resource conditions and potential impacts.
Section 4110.3-3 Implementing Changes in Active Use
    In the proposed rule, we changed the title of this section to 
reflect that it pertains to both increases and decreases in grazing 
use. We also modified how BLM implements changes in active use. The 
amended section provided that BLM will phase in changes in active use 
of more than 10 per cent over a 5-year period unless the affected 
grazer agrees to a shorter period or the changes must be made before 
the end of 5 years to comply with relevant law. This 5-year phase in 
period is similar to that in the pre-1995 regulations.
    BLM also amended paragraphs (a) and (b) by removing the phrase 
``the interested public.'' Changes in active use must be preceded by 
reports, including NEPA documents, that analyze data BLM uses to 
support the change. Under section 4130.3-1, BLM provides the interested 
public the opportunity to comment on these reports. Under section 
4160.1, BLM provides a copy of the proposed and final grazing decisions 
to implement the change to the interested public. BLM will provide the 
interested public full opportunity for participation and comment on the 
action prior to actual implementation. For this reason additional 
consultation with the interested public regarding the actual scheduling 
of the change is redundant.
    Under the final rule, changes in active use levels and emergency 
closures made due to drought, fire, flood, insect infestation, or when 
grazing poses an imminent threat to the resource, no longer trigger 
required consultation, cooperation, and coordination with the 
interested public. This change is intended to improve the 
administrative efficiency of grazing management operations.
    Many comments opposed any reduction in the role of the interested 
public, but relatively few comments addressed these particular 
functions. Some comments supporting the change noted active use changes 
as an area where efficiency could be improved by removing the 
interested public consultation requirement.
    Note again that the role of the public under NEPA is unaffected by 
this rule change. Additionally, members of the interested public will 
have an opportunity to review and provide input on any reports used as 
a basis for decisions on changes in grazing use. The interested public 
will still receive the proposed and final decisions for changes in 
active use, and they could protest the proposed decision if so desired.
    In BLM's view, the NEPA process, informal consultations, the 
opportunity to review and provide input on reports used as a basis for 
decisions, and the ability to protest before a decision is final, all 
are adequate mechanisms for identifying legitimate public concerns over 
active use changes. No protest could be filed against an emergency 
closure, which is issued as a final decision, but these decisions 
require management flexibility to allow a quick response to changing 
circumstances on the ground. These changes make the grazing program 
similar to other BLM programs in the level of coordination required for 
actions under various BLM permits and leases. Therefore, we have made 
no changes in the final rule.
    A number of comments supported the proposed provision in section 
4110.3-3 for phasing in changes in active use greater than 10 percent 
over 5 years. These comments stated that the provision would ensure 
more orderly administration of grazing on BLM administered lands and 
protect the resource better than the current regulations do. Others 
agreed that it would improve the ability of local BLM

[[Page 39455]]

field managers to use the variety of rangeland management tools 
available, including range improvements and changes in grazing 
strategies, to accomplish resource objectives because of the additional 
time allowed. Most of the supportive comments agreed that permittees 
should be given the opportunity to make adjustments over a period of 
time in order to incorporate the reductions into their entire 
operation/business without unnecessary economic disruption.
    Other comments opposed the provision allowing up to 5 years to 
implement changes in active use greater than 10 percent. Some stated 
that the provision is inconsistent with the regulatory objective: ``to 
accelerate restoration and improvement of public rangelands to properly 
functioning conditions.'' Others reasons given for opposing the 
provision included concerns that it would allow unhealthy range 
conditions to persist, delay range recovery, or lead to additional 
range degradation, especially of riparian and wetland habitats. They 
said the provision would have negative impacts on natural resources and 
other uses of the land. Some of these comments stated that the 
provision showed that BLM is more concerned with private financial 
well-being of permittees than with managing publicly owned natural 
resources in the public interest. One comment said that if the 
condition of the natural resources on a grazing allotment is so bad 
that a reduction in permitted livestock numbers in excess of 10 percent 
is necessary, then the situation is probably so bad that delaying 
implementation of the reductions would be tantamount to criminal 
neglect. Others said that such delays would lead to continued petitions 
for listing species under the ESA. One comment opposed this provision 
because it would contradict the goal of increasing administrative 
efficiency, negate the requirement for prompt action to address harmful 
grazing practices, and limit the conditions under which BLM may revoke 
a grazing permit. Others said that it would tend to weaken the ability 
of the local BLM field offices to manage rangelands in a timely fashion 
by adding considerable time before we can take action. Some comments 
conceded that under some circumstances it may be possible to phase in 
the needed changes in grazing over a 5-year period without compromising 
long-term range sustainability, but stated that BLM range professionals 
needed the ability to respond immediately and to the extent necessary 
to avoid impacts on range condition or vegetation communities that may 
take decades to reverse. Other comments expressed concern that the 
proposed 5-year phase-in period may be inadequate to protect sensitive 
species and their habitat. One comment requested clarification as to 
whether the provision allow BLM to adjust livestock numbers over a 
shorter period of time to protect wildlife and plants that are 
candidates for listing as threatened or endangered or determined by BLM 
to be sensitive, and whether the proposed rule was in compliance with 
the requirements of the Endangered Species Act. (The sensitive species 
designation is normally used for species that occur on BLM-administered 
lands, and for which BLM can significantly affect their conservation 
status through management. See BLM Manual 6840.06E (Release 6-121, 01/
19/01)).
    We believe the final rule gives BLM sufficient discretion to handle 
a wide range of circumstances. The rule does not change BLM's ability 
to cancel a permit in whole or in part if necessary. The rule is 
flexible enough to provide for immediate, full implementation of a 
decision to adjust grazing use if continued grazing use poses an 
imminent likelihood of significant soil, vegetation, or other resource 
damage. The rule also allows BLM and the permittee to agree to a 
shorter time frame for implementation. The rule allows BLM to initiate 
necessary adjustments while giving the permittee an opportunity to make 
changes in their overall business operation. The provision in the rule 
allows us to begin reducing active use when necessary, while 
considering the human aspect of the impacts of the reduction. Our 
cooperative approach should lead to a decreased likelihood of appeal on 
the part of the permittee or lessee. In turn, we expect this decreased 
likelihood of appeal to result in implementing necessary grazing 
reductions more quickly, thus allowing BLM to remedy resource problems 
more efficiently. Recent experience (1998-2002) indicates that current 
livestock grazing or level of use was a significant factor in not 
meeting land health standards on only 16 percent of the allotments 
evaluated, requiring adjustments in current livestock management. From 
1998 to 2005, 15 percent of the evaluated allotments were determined to 
be in this category. Most of these adjustments have been made in the 
season of use, or movement and control of livestock, rather than in 
levels of active use. An unknown, but likely small, portion of these 
adjustments were changes of more than 10 percent in active use. Where 
adjustments are needed to improve riparian or wetland condition, the 
adjustments are rarely in active use, but are frequently adjustments in 
season of use, or changes in length of time livestock are allowed 
access to the riparian area (e.g., grazing might be changed from 6 
weeks in the summer to 3 weeks in the spring). The rule contains an 
exception, in section 4110.3-3(a)(ii), that allows changes in active 
use in excess of 10 percent to be implemented in less than 5 years to 
comply with applicable law, such as the Endangered Species Act. BLM 
also has discretion under section 4110.3-3(b)(l)(i) and (ii) to 
implement changes in active use immediately to handle a wide range of 
circumstances. These circumstances may include fire, drought, the need 
to protect soil, vegetation, or other resources, or if continued 
grazing use poses an imminent likelihood of significant resource damage.
    BLM has the authority to implement grazing decisions immediately if 
the authorized officer determines that soil, vegetation, or other 
resources on the public lands require immediate protection because of 
conditions such as drought, fire, flood, or insect infestation, or if 
continued livestock grazing poses an imminent likelihood of significant 
resource damage. BLM's responsibilities under the ESA and BLM special 
status species policy are not affected by the final rule.
    Several comments offered alternatives to the 10 percent threshold 
and the 5 year implementation period. One comment proposed that the 
threshold for changes that prompt a delay of 5 years in implementation 
should be increased from 10 percent to at least 25 percent, reasoning 
that small adjustments would result in ascertainable changes in 
resource condition in a season or two. Another comment suggested that 
the authorized officer implement changes in active use of 5 percent or 
less in 1 year, 5 to 15 percent equally over 3 years, and in excess of 
15 percent equally over 5 years. The comment stated that this 
formulation would ensure equal, incremental decreases or increases in 
active use over time, and accelerate decreases or increases in active 
use when a relatively small change is made.
    The 10 percent threshold and 5 year implementation period proved to 
be a practical combination prior to being changed in the 1995 rules. 
The lower threshold allows affected permittees to avoid rapid 
adjustments in such significant numbers. However, the number of 
permittees and allotments affected by this provision is not likely

[[Page 39456]]

to be large, given that over the last 5 years, most adjustments in 
grazing management resulting from land health assessments have been 
made in the season of use, or movement and control of livestock, rather 
than in levels of active use. Again, recent experience (1998-2002) 
indicates that current livestock grazing or level of use was a 
significant factor in not meeting land health standards on only 16 
percent of the allotments evaluated, requiring adjustments in current 
livestock management. From 1998 to 2005, 15 percent of the evaluated 
allotments were determined to be in this category. See Section 4.3.1 of 
the EIS and page 33 of the EIS Addendum.
    Comments expressed concern that annual conditions or fluctuations 
in weather could require more than 10 percent reductions on an annual 
basis, particularly in the arid southwest.
    In practice, during prolonged drought conditions, ranchers 
voluntarily reduce their livestock numbers because of the economics of 
their industry. However, this section of the rules applies to 
adjustments in the terms of the grazing permit, rather than in 
temporary adjustments made on an annual basis. When temporary 
adjustments need to be made because of annual conditions, BLM and the 
permittee or lessee can respond by:
    (1) Resorting to temporary changes in grazing use within the terms 
and conditions of the permit or lease under section 4130.4(a);
    (2) Electing temporary nonuse under section 4130.4(d);
    (3) Decreasing active use through suspensions under section 4110.3-
2; or
    (4) In more extreme cases of drought, fire, flood, or insect 
infestation, closing or partially closing allotments under section 
4110.3-3(b).
    One comment stated that implementing stocking rate changes of more 
than 10 percent over a 5-year period would only be significant for 
large operators. For most small permit holders such changes would be a 
nuisance and administrative burden for permit managers to implement 
(citing an example of a 50 AUM permit). The comment stated that small 
changes to existing permits should be implemented in 2 years or less, 
since this would be more efficient for both permittee and public land 
manager. For larger permits, the comment suggested that the phase-in of 
changes should be dependent on situational conditions and their 
relationship to the need for improving rangeland health and permittee 
interests (up to 5 years).
    The final rule is flexible enough to allow BLM and the permittee to 
agree to a shorter time frame for implementation. The regulations allow 
BLM to initiate necessary adjustments while giving permittees 
opportunity to make changes in their overall business operations.
    One comment pointed out that BLM has not reviewed many grazing 
allotments for over a decade. The comment concluded that, considering 
improvements in our knowledge of range science and of best management 
practices for rangelands over the past 20 years, it is likely that 
changes in active use in excess of 10 percent will be required on 
numerous allotments.
    BLM is evaluating current resource conditions in relation to land 
health standards. By the end of 2003, we had evaluated 40 percent of 
allotments, and plan to evaluate the remainder by the end of 2008. As 
we stated earlier, based on results and changes made because of these 
evaluations, most adjustments in grazing management are being made in 
the season of use, or movement and control of livestock, rather than in 
active use.
    One comment cited situations when it would be desirable to increase 
grazing in order to enhance habitat for ``federal trust species.'' The 
comment also asked whether BLM needs permission from an allotment's 
existing permittee before it could allow another grazing operator to 
graze additional livestock on an allotment when desired to enhance 
habitat for Federal trust species, and asked also whether such an 
operator would need to meet mandatory qualifications.
    It is advantageous at times to increase livestock numbers for weed 
or vegetation management for purposes of enhancing habitat and reducing 
brush cover for specific wildlife species (e.g., burrowing owl or 
mountain plover). In these cases BLM has several options. The BLM would 
first contact the existing permittee to discuss needs and options 
feasible to the permittee. If the permittee is unable to increase 
stocking numbers, BLM may advertise an available opportunity to 
applicants qualified under section 4110.1, offer a free-use permit, or 
contract to have vegetation reduced by goats, mechanical thinning, or 
manual pulling and weeding.
    One comment stated that slowing the response to unhealthy 
rangelands seems to be inconsistent with the current Administration 
policy of accelerating management responses to fire and the conditions 
that lead to or exacerbate fires.
    This comment is attempting to compare two situations that are not 
comparable. Fires in the wrong locations threaten life and property, 
and it is vital to accelerate management efforts to deal with these 
threats. Rangeland degradation does not normally carry equivalent 
threats. The regulations are flexible enough to allow accelerated 
management to address range degradation that cannot wait for the phase-
in period provided in section 4110.3-3(a)(1). As stated earlier, the 
rule at section 4110.3-3(b)(1)(i) allows BLM to remove or modify 
livestock grazing when immediate protection is needed because of 
conditions such as drought, fire, flood, or insect infestation. In 
1994, BLM amended its grazing regulations to address the health of 
public rangelands. These changes, including the standards and 
guidelines for grazing administration, remain in the rule and continue 
to contribute to improving the health of public rangelands. The changes 
adopted in this final rule seek to refine, without altering the 
fundamental structure of, the grazing regulations. In other words, we 
are adjusting rather than conducting a major overhaul of the grazing 
regulations.
    One comment asked BLM to require that increases in active use be 
implemented by decision, so that the action could be protested and 
appealed, and to make it consistent with the requirement at section 
4110.3-3(a)(2), which, the comment states, requires that decreases in 
active use be implemented by decision. Another comment stated that BLM 
should remove its authority at section 4110.3-3 to implement changes in 
active use by decision, so that range improvements could be installed 
in lieu of reducing active use.
    This provision in section 4110.3-3 was not proposed for change in 
the proposed rule. BLM believes that it is important to retain the 
discretion to change preference by agreement or by decision, depending 
on management circumstances that can vary greatly from instance to 
instance, and not require the use of one method or the other. We would 
use agreements in relatively simple management circumstances, such as 
with the holder of a small allotment with relatively few management 
issues. For example, an operator who agrees with the need for a change 
in his forage allocation, and has no interested public, would be a 
likely candidate for implementing a change in preference by agreement. 
In contrast, decisions are more likely to be used in complex management 
circumstances such as might be encountered, for example, when 
addressing the needs of a large allotment that has several resource 
issues, is permitted to several operators, and has several interested 
publics, some of whom might dispute the need for, or

[[Page 39457]]

the appropriate level of, the preference change. Section 4110.3-3(a)(2) 
does not require that decreases in active use be implemented by 
decision. This section requires that when a reduction in permitted use 
is implemented by decision, as opposed to by agreement, the decision 
must first be issued as a proposed decision, except when immediate land 
protection is needed because of circumstances such as drought, fire, 
flood, or insect infestation, or when continued grazing use poses an 
imminent likelihood of resource damage. There are times when the 
installation of range improvements is an adequate substitute for 
indefinite suspension of active use. For example, a new water 
development may improve grazing distribution enough so that forage not 
previously available becomes available for livestock use. However, 
range improvements are not always the appropriate management response. 
It is in the interest of sound management to provide BLM with the 
flexibility to modify active use, or authorize range improvements, 
depending on the circumstances.
    One comment suggested rewriting sections 4110.3-2 and 4110.3-3 so 
that they are clearer and don't cross-reference each other so much.
    Each of the two sections specified in the comment contains one 
cross-reference to the other section. We do not consider this an 
unreasonable number of cross-references. We have reviewed the two 
sections and do not see how they could be written more clearly and 
still provide the information necessary.
    One comment suggested making the 5-year phase in of changes in 
active use greater than 10 percent discretionary with BLM, stating that 
it would allow BLM to react in a timely manner if resource conditions 
were in more immediate need of improvement, for whatever reason, and 
result in greater benefits to wildlife.
    The regulations, at section 4110.3-3, already allow BLM to act more 
quickly to avoid significant resource damage by closing all or portions 
of an allotment in the circumstances described in the comment.
    One comment urged BLM to make adjustments when data indicates 
livestock numbers are out of balance with the capacity of the land. 
Estimates of stocking rates in plans do not necessarily reflect BLM's 
willingness to reduce stocking levels. Another comment stated that 
Federal rangeland health standards demand that the rule should focus 
decisionmaking on management objectives stated in land use plans, 
activity plans, and grazing decisions.
    Stocking rates are best determined in the land use planning 
process. However, as we stated earlier, the regulations contain 
mechanisms for making changes in grazing use to avoid significant 
resource damage. As provided in subpart 4180, we will use monitoring 
and standards assessment to determine whether changes in management 
practices are necessary.
    Several comments suggested modifications of this section 4110.3-2 
of the proposed rule. One was that BLM should consult with any base 
property lienholder before closing allotments to grazing or modifying 
grazing authorizations due to emergencies or when continued grazing use 
will result in resource damage. Another was to include consultation 
with county commissioners where downward adjustments in grazing use 
levels are being planned, and that the reductions should be justified 
by reasons that are documented in an allotment evaluation that is 
conducted before the adjustments occur. A third suggested change was to 
amend Sec.  4110.3-3(b)(1) and (b)(2) by replacing the term 
``authorized grazing use'' with ``active use'' because there is no 
definition of ``authorized grazing use'' in the regulations.
    BLM is not changing the regulations in response to these comments. 
BLM implements changes in active use by grazing decision or by 
documented agreement. When changes are implemented by decision, our 
regulations provide for sending such decisions to any lienholder of 
record. If such lienholders requested ``interested public'' status, 
they would also be able to provide input and comment on reports BLM 
uses as a basis for making decisions to increase or decrease grazing 
use. Given these opportunities for lienholder input to BLM's 
decisionmaking process, there is no need for BLM to require itself to 
consult specifically with lienholders before implementing changes in 
active use. Further, in the pursuit of sound resource management, it 
would be inappropriate to allow consideration of whether base property 
is subject to a lien to affect or change a BLM decision to close 
allotments to grazing or to modify grazing permits or leases due to 
emergencies or when continued grazing use will result in resource damage.
    The state having lands or responsibility for managing resources in 
the affected area may choose to include county commissioners' input as 
part of the state's consultation with BLM. BLM may also consult 
directly with county commissioners at its option. BLM believes that 
these two avenues of consultation provide adequate opportunity for 
county commissioners to make their views known to BLM regarding 
management issues. BLM makes either downward adjustments in grazing use 
levels temporarily in response to emergencies or indefinitely after it 
has determined that livestock forage is insufficient on a sustained 
yield basis to support grazing at levels that had been previously 
authorized. In either case, the decision implementing the downward 
adjustment provides the rationale for the action and is subject to 
review upon appeal. In most cases of indefinite downward adjustments in 
grazing use levels, such rationale relies upon analysis found in a 
documented allotment evaluation.
    Paragraphs 4110.3-3(b)(1) and (b)(2) allow BLM to modify authorized 
grazing use in response to emergencies, including complete closure of 
an area to grazing when necessary to provide immediate protection 
because of conditions such as drought, fire, flood and insect 
infestation. ``Active use'' refers to a number of AUMs of forage. The 
term ``authorized grazing use'' is more expansive and refers to all the 
terms and conditions of use authorized by a term permit or lease. These 
terms and conditions include, at a minimum, the number of livestock 
authorized, where they may graze, and the season of the year and period 
that they may graze. Although BLM may modify ``active use'' in response 
to emergency resource conditions, we may also modify the other 
parameters of use (such as location, period, and season) in response to 
these conditions.
    One comment suggested removing the provision authorizing BLM to 
close allotments to grazing or modify authorized grazing use when the 
authorized officer determines that resources on public land require 
immediate protection or continued grazing use poses an imminent 
likelihood of significant resource damage (section 4110.3-3(b)(1)). The 
comment stated that the provision is too vague and could be used as a 
catch-all to eliminate grazing at any time.
    We have not adopted this suggestion in the final rule. The phrase 
``or where continued use poses an imminent likelihood of significant 
resource damage'' is in fact a prerequisite that must occur or be found 
to exist before BLM can take action. The phrase covers situations not 
otherwise specified in the regulation (i.e. ``because of conditions 
such as drought, fire, flood, or insect infestation''). It would be 
impractical for BLM to list in the regulations all possible situations 
where an immediate closure or modification of grazing may be needed. 
All BLM decisions that close

[[Page 39458]]

or modify grazing use are supported by rationale stated in the 
decision, and decisions may be appealed under subpart 4160 and part 4.
    One comment stated that, because of the problems associated with 
recurrent long term drought, the regulations should require that base 
property provide forage or other means of sustaining livestock should 
the necessity arise to remove livestock from the public lands. 
Furthermore, the comment went on, the base property should be real fee 
property of the permittee or lessee and not leased property from a 
state or other private property owner.
    In areas where land serves as base property, BLM specifies the 
length of time that the property must be capable of supporting 
authorized livestock during the year (see section 4110.2-1(b)), thus 
including the concept that the base could be used to sustain the 
livestock should the necessity arise to remove them from public lands. 
This ``base property requirement'' differs depending on the BLM 
jurisdiction, but generally ranges from 2 to 5 months. In the desert 
southwest, where water or water rights can serve as base property, BLM 
can close allotments or portions of allotments to grazing use 
immediately to protect resources because of conditions such as drought. 
BLM sees no need to require that base property must not be leased property.
    One comment identified an incorrect reference to 43 CFR 4.21 in 
4110.3-3(b)(2). A stay relative to grazing is granted in accordance 
with 43 CFR 4.472.
    The final rule contains the correction.
Section 4110.4-2 Decrease in Land Acreage
    In the proposed rule, we removed the term ``permitted use'' from 
this section and replaced it with the term ``grazing preference'' for 
the reasons explained previously. No public comments addressed this 
specific change, and we have made no further changes in the final rule 
as to this aspect of the proposed rule.
    Several comments raised issues that are tied to this provision. One 
comment suggested that BLM should be able to designate lands as not 
available for grazing when this is needed to protect critical or 
sensitive areas. Another comment stated that BLM should develop 
regulations providing: (a) For the retirement or non-use of grazing 
permits by conservation organizations; (b) that a voluntary permit 
relinquishment automatically triggers the immediate permanent closure 
an allotment to livestock grazing when that closure would benefit 
conservation purposes; and (c) that at the request of the permittee, 
BLM will promptly initiate a planning process to determine whether the 
applicable land-use plan should be amended to provide that all or a 
portion of an allotment will be made unavailable for grazing authorized 
by FLPMA and PRIA. The comment stated that ``voluntary retirement'' of 
grazing permits is sometimes the fastest, simplest, most effective, and 
most amicable method of resolving disputes over livestock grazing in 
environmentally-sensitive areas.
    FLPMA directs BLM to develop and maintain land use plans to provide 
for multiple use of the public lands, including livestock grazing use. 
Land use plans, which are developed at the local office level with the 
involvement of the general public, identify lands available and not 
available for livestock use and management. In some land use plans, BLM 
can and does designate lands as not available for grazing, and assigns 
them to other uses. This results in reductions in land acreage 
available for grazing, and BLM acts under section 4110.4-2 to implement 
the reductions by canceling grazing preference.
    BLM amends or revises land use plans under the planning regulations 
(43 CFR part 1600) and the BLM land use planning handbook. An agreement 
on voluntary relinquishment of a grazing permit (and preference) for 
purposes of furthering a proposal to amend a land use plan to provide 
for the retirement of an area from livestock grazing is not a permanent 
contractual relationship between the entity relinquishing the permit 
and BLM. Even if BLM amends the land use plan and effectively retires 
the area from grazing for the immediate or foreseeable future, this 
action can be amended or reversed under subsequent BLM planning and 
decision processes.
    One comment stated that, in addition to the permittee or lessee, 
BLM also should give 2-year notification to any base property lien 
holder before canceling a permit or lease when the lands under the 
permit or lease will be devoted to a public purpose that precludes 
livestock grazing as stated in 4110.4-2(b) because this will ``level 
the playing field.''
    This suggestion is consistent with existing BLM policy to provide 
as a courtesy, upon request, notification to known base property lien 
holders of actions that may affect the value of that property. BLM does 
not believe, however, that it should require itself by regulation to 
provide lienholder notice in this circumstance. Lenders normally 
include provisions in their contracts with the borrower requiring the 
borrower to notify them of actions that will affect the value of their 
collateral.

Subpart 4120--Grazing Management

Section 4120.2 Allotment Management Plans and Resource Activity Plans
    We amended paragraph (c) of this section in the proposed rule to 
state BLM's internal procedural requirement more straightforwardly. The 
current rule provides that the decision document following the 
environmental analysis supporting proposed plans affecting the 
administration of grazing is considered a proposed decision for 
purposes of subpart 4160. This implies, but does not specify, that we 
must issue such decision documents following the procedures of section 
4160.1 on proposed decisions. The final rule merely makes it clear that 
we issue these decisions in accordance with the procedures in section 
4160.1.
    No public comments addressed the changes in this section, and we 
have made no changes in the final rule.
Section 4120.3-1 Conditions for Range Improvements
    In the proposed rule we revised paragraph (f) for clarity and to 
correct a citation to NEPA. No public comments addressed this section, 
and we have made no changes in the final rule.
Section 4120.3-2 Cooperative Range Improvement Agreements
    In the proposed rule we amended paragraph (b) to provide that, 
subject to valid existing rights, cooperators and the United States 
would prospectively share title to permanent structural range 
improvements constructed under cooperative range improvement agreements 
on public lands. Such structural improvements include wells, pipelines, 
and fences constructed on BLM-managed public lands. BLM and cooperators 
will share title to range improvements of public lands in proportion to 
the value of their contributed labor, material, or equipment to make 
on-the-ground structural improvements, subject to valid existing 
rights. This returns the provision on how title for improvements 
constructed under Cooperative Range Improvement Agreements is shared to 
the regulation in place before 1995. The current regulations provide 
that the United States has title to new permanent structural range 
improvements.
    Numerous comments opposed the change in section 4120.3-2 providing 
for shared title to permanent range improvements by BLM and the 
cooperators. One frequently expressed

[[Page 39459]]

concern was that a shared title creates potential ``takings'' issues if 
the need to change from grazing to some other land use in an allotment 
arises in the future. Comments asserted that a permittee or lessee with 
shared title to a permanent structure on public land would demand 
compensation for the lost value of his or her property if BLM proposed 
changes in the land use that would reduce or discontinue grazing in an 
allotment. Comments also stated that BLM would lack the funds needed to 
compensate the permittee, and would be unable to take the management 
actions needed to sustain rangeland health. Some comments stated that 
the provision for the United States to hold title to range improvement 
structures on public land was consistent with the TGA. One comment 
stated that sharing title to range improvements may make it more 
difficult to impose restrictions or modify grazing management because 
of these issues regarding regulatory takings and access to private 
property. A similar comment asserted that allowing shared title to 
range improvements gives away some of the public rights on public 
lands, making it more difficult for the public to redirect or 
reallocate the use of public lands as priorities change. The comment 
stated that public rights should not be ``given away'' and that they 
would have to be purchased back at a later date as circumstances 
change. Another comment questioned whether future rights or privileges 
to access ``titled'' range improvements will be conveyed to those 
holding the title that would not be extended to the general public. The 
comment requested that we clarify whether any priority would be 
conveyed to the ``titled'' holder for any land leases.
    BLM is choosing to share title to range improvement projects 
constructed in the future under Cooperative Range Improvement 
Agreements to encourage greater private investment in range 
improvements. This is not inconsistent with the TGA. Under the final 
rule, permanent structural range improvements will be jointly owned by 
the United States and permittees in proportion to their respective 
investments. The final rule provides operators an opportunity to 
maintain some asset value for their investments in range improvements, 
and thereby encourages private investments in them. However, an 
operator's interest in a permanent structural range improvement would 
not reduce BLM's ability to manage or obtain access to public lands. 
Sections 4120.3-1(e) and 4120.3-2(d), which are not changed in the 
final rule, provide that a cooperative range improvement agreement 
conveys no right, title, or interest in any lands or resources held by 
the United States, and does not confer upon a cooperator or permittee 
the exclusive right to use a range improvement or the affected public 
lands. Under these provisions, cooperative range improvement agreements 
would continue to include provisions that protect the interests of the 
United States in its lands and resources, and ensure BLM's management 
flexibility on public lands.
    Title to range improvements has no bearing on whether or to what 
extent BLM will allow access. Individuals would still have to seek 
authorization for access to maintain range improvements, whether they 
hold title to them or not. BLM gives no special privileges to 
``titled'' holders of range improvements.
    BLM disagrees that a joint title to range improvements creates 
``takings'' issues. The full extent to which permittees and lessees may 
be eligible for compensation is spelled out in the existing 
regulations. The existing regulations already assure that permittees 
and lessees are appropriately compensated for their investment in range 
improvements that can no longer be used because of government action. 
Section 4120.3-6(c) provides that ``whenever a grazing permit or lease 
is canceled in order to devote the public lands covered by the permit 
or lease to another public purpose, including disposal, the permittee 
or lessee shall receive from the United States reasonable compensation 
for the adjusted value of their interest in authorized permanent 
improvements placed or constructed by the permittee or lessee on the 
public lands covered by the permit or lease.'' The final rule does not 
change this requirement for compensation. The regulations do not 
address compensation for other types of cancellations. For example, 
there is no provision addressing compensation where permits are 
canceled for noncompliance. In another example, if a permittee or 
lessee voluntarily sells his property and interest, he may negotiate 
compensation with the new owner for the permittee's share of a range 
improvement title. However, BLM would not be a party to that 
transaction, except to decline to approve the transfer of the 
preference in the event that the new owner has not agreed to compensate 
the transferor, as described in section 4120.3-5.
    Some comments concluded that the change in section 4120.3-2 gives 
permittees and lessees exclusive title to new range improvements. Other 
comments opposed the change because, they asserted, it could create an 
interest in the land prohibited by the TGA. A related concern expressed 
by comments was that BLM would be unable to take the management actions 
needed to sustain rangeland health when range improvements were owned 
by permittees, and that BLM's authority to manage its grazing 
allotments would be limited. One comment took the opposite view that 
the change in the rules was not necessary, because the ranchers already 
have property rights on public lands.
    The rule change does not create an exclusive right, title, or 
interest in the public land, which is prohibited by the TGA. Section 
4120.3-2(b) specifically states that shared title to range improvements 
is ``[s]ubject to valid and existing rights.'' The regulations are 
equally clear on the creation or the existence of an interest in the 
land prohibited by the TGA. Holding a joint title to an improvement 
does not create a permittee interest in the public land, and will not 
limit BLM's ability to manage grazing allotments. Section 4120.3-1(e) 
states, ``A range improvement permit or cooperative range improvement 
agreement does not convey to the permittee or cooperator any right, 
title, or interest in any lands or resources held by the United 
States.'' Since the United States retains ownership of the land, and 
shares ownership of the improvements, BLM management actions would not 
be constrained by a permittee's interest in a range improvement.
    One comment asked whether BLM would have independent authority to 
remove, replace, or modify a structure, or if the cooperator's 
permission would be required. Another comment expressed concern that 
``sharing of titles on permanent structures'' may limit BLM's ability 
to implement effective conservation measures for sage-grouse, or to 
remove or modify structures, which may be negatively affecting sage-grouse.
    Cooperative range improvement agreements (which allow installation 
of permanent structural range improvements) include provisions that 
protect the interest of the United States and its lands and resources. 
These provisions make it clear that the ownership of improvements does 
not confer exclusive right to the permittee or cooperator to use the 
improvement or the land affected by the range improvement work. Section 
4120.3-1(a) provides that range improvements are to be installed, used, 
maintained, and/or modified or removed in a manner consistent with 
multiple use management. BLM retains authority to

[[Page 39460]]

specify the design, construction, and maintenance criteria for the 
range improvement, and may require permittees or lessees to remove 
range improvements if they no longer help achieve land use plan or 
allotment goals and objectives.
    Joint title to permanent range improvements will not limit BLM's 
ability to take measures to protect sage-grouse. The Memorandum of 
Understanding (MOU) the BLM, Forest Service, and FWS signed with the 
Western Association of Fish and Wildlife Agencies (WAFWA) to conserve 
the greater sage-grouse and its habitat states our commitment to 
protect sage-grouse.
    Several comments noted that the changes would be inconsistent with 
common law or Forest Service regulations.
    Nothing in the TGA ``denies the Secretary authority reasonably to 
decide when or whether to grant title to those who make improvements.'' 
Public Lands Council v. Babbitt, 529 U.S. at 750. While we draw 
parallels between Federal and common law rules in explaining the 
rationale for existing section 4120.3-2, and note that the Forest 
Service had a similar policy, BLM is not obligated to accept common law 
rules or Forest Service statutes or policies in setting the terms for 
ownership of range improvements on public lands.
    One comment objected to joint title to range improvements because 
it would increase BLM's administrative burden.
    BLM disagrees that the proposed change will increase our 
administrative costs. BLM is currently obligated to record and track 
the value of contributions that cooperators provide for range 
improvements, including the imputed value of their labor. This is 
necessary under the current rules to meet our requirement that we 
reasonably compensate a cooperator if the permit or lease is canceled 
to devote public lands to another use or for other purposes. Thus, our 
administrative responsibilities will exist whether BLM shares the title 
to the improvement, or holds it solely in the name of the United 
States. Consequently, the shared title does not result in an additional 
administrative burden.
    One comment expressed concern about how joint title would affect 
Tribal consultation, cooperation, and coordination requirements and 
whether BLM is abdicating control of these responsibilities.
    BLM is responsible for consultation with the Tribes and will ensure 
that the required consultation occurs for all appropriate activities on 
public land. BLM does not believe that shared title with a cooperator 
for a range improvement is mutually exclusive with consultation. We 
again refer to section 4120.3-1(e), which states that establishing a 
range improvement does not convey any right, title, or interest in any 
lands or resources held by the United States. Under the final rule, BLM 
retains control of when and where improvements are installed, and other 
terms and conditions of the development (section 4120.3-1). Also, the 
cooperators' title and interest are limited to the proportion of 
structural improvements in which they invested. Considering these 
factors, cooperative range improvements should have no effect on Tribal 
consultations, BLM control of the land, or any Indian trust 
responsibilities.
    Several comments observed that evidence is absent or inconclusive 
that joint ownership of title to improvements encourages permittees to 
invest in further improvements, thereby improving range conditions, or 
increases the permittee's ability to secure a loan.
    State-by-state data on range improvements is shown in the EIS in 
Table 3.4.3.1. It is clear from the data that the number of new range 
improvements has declined since 1995 when the rule was last changed. 
The number has declined in every state with grazing on public land. The 
average decline is 38 percent. From 1982 to 1994, BLM authorized an 
average of 1,945 range improvements per year. From 1995 to 2002, we 
authorized an average of 1,210 per year. Several factors may be 
contributing, but it is reasonable to conclude that some of that 
decline may have been the result of the 1995 rule change. It is logical 
to assume that sharing title among cooperators and the United States 
provides the opportunity to maintain some asset value for investments 
made, thereby encouraging and facilitating private investment in range 
improvements. A permittee's or lessee's belief that sharing the title 
to improvements in which he invests contributes to stable ranch 
operations is also significant. Shared title to range improvements also 
provides an opportunity for permittees and lessees to document 
investment in their business enterprises, which is useful for securing 
business capital and demonstrating value of their overall private and 
public lands operations. Permittees and lessees perceive this 
recognition of investment as crucial to their business and, therefore, 
as an important factor when considering personal investment in range 
improvements. Beyond ranch economics, range improvements are tools for 
improving range conditions. Those benefits accrue to both public and 
private land and resource managers. BLM may enter into a cooperative 
range improvement agreement with any person, organization, or other 
government entity to develop range improvements. The shared title to 
such improvements is expected to serve as an incentive for all 
potential cooperators to participate and partner with BLM in the 
development of range improvements to assist in meeting management or 
resource condition objectives.
    Other comments were concerned that the impacts of shared title were 
not sufficiently analyzed, including the impact of increased wildlife 
use as range condition improves.
    BLM analyzes the anticipated impacts of shared title in the FEIS on 
pages 4-25, 4-31, 4-42, and 4-48. To the extent that shared title 
provisions will stimulate investment in range improvements intended to 
improve or enhance grazing management practices, or the quantity and 
quality of forage, BLM expects that such actions will result in 
improved habitat for wildlife. BLM considers improvement in wildlife 
habitat that may result from range improvements, and subsequent upward 
trend of overall watershed condition, to be benefits of the final rule. 
However, the nature of the regulatory change does not lend itself to 
broad analysis of the topic raised by comment. Anticipated impacts that 
may result from increased wildlife use because of improvements, 
regardless of whether they are constructed as a result of the shared 
title provision, will be analyzed under NEPA on site-specific basis as 
part of the preliminary work that precedes the construction of any 
range improvement.
    Some comments questioned the fairness of sharing title to 
improvements with permittees and lessees. They regarded the assignment 
of shared title as preferential treatment that is undeserved when terms 
and conditions of permits or leases are violated. One comment 
disapproved of shared ownership of improvements because they would be a 
constraint on other permittees or lessees in a common allotment.
    BLM's commitment to fairness is an important aspect of the joint 
title to range improvements. A permittee's or lessee's share of the 
title to a development in which he or she invests has no effect on 
BLM's administration of terms and conditions of the grazing permit or 
lease. Under section 4120.3-6(c), permittees and lessees are only 
compensated for the adjusted value of their interest in range 
improvements in

[[Page 39461]]

the event the permit or lease must be canceled to allow the land to be 
devoted to another purpose. There is no compensation if there is no 
remaining value of their interest in the improvement. BLM believes this 
is an equitable approach. If a permittee or lessee loses his grazing 
preference due to noncompliance with the permit or lease, there is no 
compensation for range improvements that remain on the allotment. 
However, he or she would be given the opportunity to remove 
improvements unneeded by BLM. The former permittee or lessee would also 
be responsible for restoration of the improvement site.
    Regarding common allotments, planning and implementation of range 
improvements on common allotments is an inclusive process involving all 
permittees or lessees authorized to graze in the allotment. As provided 
in section 4120.3-2(a), BLM enters into cooperative range improvement 
agreements to achieve management or resource condition objectives and 
does so through a collaborative process.
    One comment suggested that all range improvements, not just 
permanent improvements, should be eligible for shared title based on 
contributions of the cooperator.
    BLM currently allows title to temporary, removable range 
improvements installed under range improvement permits to be held by 
the permittee or lessee (section 4120.3-3). If the comment was 
suggesting that BLM should share title to non-structural improvements 
that cannot reasonably be removed from the land, such as a seeding or a 
prescribed fire treatment, BLM rejects this suggestion because it is 
impractical and would unduly complicate land administration. Where a 
cooperator permittee or lessee has contributed to an improvement that 
cannot be removed from the land, and BLM cancels the associated grazing 
permit or lease to devote the land to another public purpose that 
precludes livestock grazing, the permittee will be eligible for 
compensation for the adjusted value of their interest in the 
improvement, as documented in a cooperative agreement, under section 
4120.3-6(c) and Sec. 402(g) of FLPMA (43 U.S.C. 1752(g)). BLM will 
continue to hold 100 percent of the title to range improvements that 
cannot be removed from the land.
    One comment expressed concern about who would be liable if a public 
land user was injured in connection with a privately owned improvement.
    Based on our previous experience with joint Federal-private 
ownership, we do not recognize any liability issues that should be 
addressed in this rulemaking. Issues of liability generally are fact-
specific, and are best resolved on a case-by-case basis. Moreover, 
cooperative range improvement agreements will continue to include 
provisions that protect the interests of the United States in its lands 
and resources.
    One comment asked that we clarify agency and permittee 
responsibilities under the Endangered Species Act (ESA) and NEPA for 
shared range improvements. Another comment stated that if grazing 
permittees share title to range improvements, they may be accountable 
for any taking under ESA that occurs as a result of these improvements. 
Another comment stated BLM should consider and allow modification of 
range improvements if they are negatively affecting sensitive species. 
In addition, this comment stated that modification may be necessary to 
minimize the effects and ``avoid jeopardy to listed species.'' One 
comment stated that, at a minimum, the rule should make it clear that 
ESA section 7 consultation requirements and consideration of state-
listed or sensitive species would still be applicable to grazing activities.
    Additional clarification is not needed to set forth BLM's 
responsibility to consult with the appropriate service agency pursuant 
to the ESA when a discretionary BLM action triggers the application of 
the ESA. BLM will continue to fulfill the requirements for consultation 
in accordance with Section 7 of the ESA. Section 4120.3-1(f) provides, 
and will continue to provide, that ``proposed range improvement 
projects shall be reviewed in accordance with the requirements of 
[NEPA].'' The fact that a permittee holds a joint title with BLM for a 
range improvement has no effect on BLM's obligations under the ESA and 
NEPA.
    As part of NEPA analysis and the decision making process, BLM 
considers potential impacts of the range improvements to special status 
species (including listed species) and either avoids or mitigates them. 
Listed species are protected by the ESA. Therefore, BLM is obligated to 
make modifications as necessary to avoid jeopardy or to minimize 
incidental take as directed by the FWS or the National Marine Fisheries 
Service in a biological opinion.
    BLM expects individuals to take steps to ensure they are in 
compliance with the appropriate provisions of ESA. It is a prohibited 
act under section 4140.1(b)(2) for any person to install, use, 
maintain, modify, or remove range improvements on public lands without 
BLM authorization. If any person did such an act without BLM 
authorization and thereby violated the ESA, he or she would be liable 
for the applicable penalties for violations of the grazing regulations 
as well as those for any violation of the ESA.
    An additional comment suggested that BLM should retroactively 
provide for shared title to range improvements constructed under 
cooperative range improvement agreements after the 1995 rules changes 
took effect.
    The Department has declined to make the proposed change retroactive 
to 1995, since such retroactive changes have been discouraged by the 
Supreme Court (Bowen v. Georgetown University Hospital, 488 U.S. 204 
(1988)).
Section 4120.3-3 Range Improvement Permits
    We modified paragraph (c) in this section of the proposed rule to 
remove a reference to conservation use.
    We received two comments recommending that BLM authorize permanent 
range improvements under range improvement permits, noting that such 
permits are allowed under Section 4 of the TGA.
    Under Section 4 of TGA (43 U.S.C. 315), the Secretary has the 
authority to determine whether to issue permanent range improvements 
under range improvement permits or under cooperative range improvement 
agreements. BLM believes it is in the best interests of the public to 
authorize all permanent developments such as spring developments, 
wells, reservoirs, stock tanks, and pipelines under cooperative range 
improvement agreements to promote achievement of management and 
resource objectives. We have not adopted this recommendation in the 
final rule.
    We received an additional comment suggesting that BLM consult with 
all permittees associated with an allotment prior to approving 
nonrenewable use, and require cooperation from all permittees or 
lessees with the temporary operator.
    Under section 4130.6-2, which addresses nonrenewable grazing 
permits and leases, BLM is required to consult, cooperate, and 
coordinate with all affected permittees or lessees, as well as the 
state having lands or responsibility for managing resources within in 
the area, before issuing a nonrenewable grazing permit or lease. If BLM 
issues such a nonrenewable permit or lease, the preference permittee or 
lessee shall cooperate with the temporary authorized use of forage by 
another operator. BLM agrees that all preference permittees or lessees 
in an allotment

[[Page 39462]]

with temporary use authorized should be consulted and should cooperate. 
Therefore, we have amended section 4120.3-3(c) in the final rule by 
adding a cross-reference to the section 4130.6-2 requirement.
    One comment urged that we revise section 4120.3-3(c) to remove any 
reference to the permittee or lessee cooperating with a temporary 
authorized use of forage by another operator, stating that BLM should 
not have the discretion to allow someone other than an allotment's 
preference holder to graze in an allotment. Doing so, according to the 
comment, could cause conflict among BLM, the preference holder, and the 
temporary grazers.
    BLM needs the discretion to authorize grazing use on public lands 
when forage is available. We realize that there is potential for 
conflict, as the comment describes. In the final rule, we have 
rewritten Sec.  4120.3-3(c) to make it clear that BLM will consult with 
the preference operator before authorizing such use.
Section 4120.3-8 Range Improvement Fund
    We amended this section only to correct a misspelling. One comment 
objected to the correction, but provided no reason. We have made no 
changes in the final rule.
Section 4120.3-9 Water Rights for the Purpose of Livestock Grazing on 
Public Lands
    We proposed to amend this section by removing the requirement that 
livestock water rights be acquired, perfected, maintained, and 
administered in the name of the United States to the extent allowed by 
the laws of the states where the rights would be acquired. We made this 
change to provide BLM greater flexibility in negotiating arrangements, 
within the scope of state processes, for construction of watering 
facilities in states where the United States is allowed to hold a 
livestock water right. BLM continues to have the ability to acquire the 
water right to the extent allowed by state water law.
    We received many comments objecting to the change in the water 
rights provision. Most common were the general concerns that the 
proposed change communicated less commitment by the United States to 
hold the water rights on public land, which would result in more water 
rights in the name of permittees or others, complicating multiple use 
land management in a variety of ways. The identified complications 
included clouding title, hindering land exchanges and transfers of 
preference, encouraging takings claims by privatizing public resources, 
and devaluing public land. The over-riding concern of these comments 
was the supposed rejection by the proposed rule change of the 
fundamental connection of water to the land.
    We believe that the predicted complications that may be triggered 
by removing the requirement that water rights for livestock use be held 
in the name of the United States have a low probability of occurring. 
First, an increase in the number of water rights for livestock use on 
public lands held in the name of permittees or lessees is probable, but 
we believe it unlikely to compromise our ability to manage public lands 
effectively in accordance with FLPMA's requirement of multiple use 
management. Use of water on public land for wildlife, recreation, 
mining, and other uses will continue with rights for those uses usually 
in the name of the United States. By removing the requirement that 
water rights be acquired, perfected, maintained, and administered in 
the name of the United States, BLM may be in a position to negotiate 
better cooperative agreements, resulting in improved cooperation 
between BLM, states, and permittees and lessees. Second, ownership of 
water rights by permittees will have no effect on title to the land, 
since land remains in the ownership of the United States (section 
4120.3-1(e)). Third, complications in exchanges or preference transfers 
resulting from permittee ownership of water rights for livestock use 
could occur, although we do not expect them to be common. When they 
occur, they can often be resolved through negotiated settlements among 
all parties. Moreover, in most cases, BLM will not exchange or dispose 
of large tracts of the public lands; thus, private party ownership of 
water rights on these lands will have little impact. In addition, a 
transfer of preference would likely involve a transfer or sale of a 
permittee's base property or base water to a new permittee. A 
settlement would have to be reached between transferor and transferee 
on compensation for range improvements and water rights. BLM does not 
believe that the necessity for this type of agreement will hinder 
transfer. We disagree that private ownership of water rights on public 
lands will lead to successful takings claims. A water right is a 
property right that is distinct from title to the land managed by BLM. 
Land management decisions do not affect title to water. Finally, we 
disagree with the comment that the value of public land may be reduced 
if BLM does not control the water rights. The value of the land and the 
water right are two separate things. BLM also believes, however, that 
any such decrease will not affect our ability to manage the public lands.
    Several comments anticipated a loss of incentive to comply with 
grazing rules or consult and cooperate with BLM by permittees who own 
the livestock water rights.
    We disagree that this is likely to occur. Many water rights are 
currently held by permittees, or jointly owned with BLM, and we have 
not seen evidence that holding a water right discourages cooperation or 
compliance with terms and conditions of grazing permits. BLM's 
authority to take action under subparts 4140, 4150, and 4160 is not 
affected by the name in which the water right is held.
    Two comments observed that the proposed rule was inconsistent with 
laws governing water rights ownership on most state land, on land 
managed by the U.S. Forest Service, and on privately owned land.
    BLM agrees that there is inconsistency among the laws and policies 
governing water rights ownership in states and agencies throughout the 
country. For example, the BLM grazing program is guided by different 
laws, regulations, and policies than the Forest Service's program. 
Further, states assign water rights under different state laws, 
regulations, and policies. In this patchwork regulatory setting the 
flexibility afforded by the proposed rule will benefit BLM in 
cooperating with permittees and states. We believe that any 
inconsistencies are unlikely to interfere with BLM land management.
    Several comments questioned why permittees had any need for a water 
right that was associated with a water development. One asked why water 
right ownership would affect a permittee, as long as he had the water 
needed for his operation. Another said that water right ownership by 
the permittee was unnecessary now that the permittee has title of the 
water development. Another stated that the water right should be 
public, if BLM was investing public funds in the developments.
    Although many water rights for livestock use are associated with 
water developments, it is not always the case. Moreover, water rights 
are separate and distinct from water developments. The water right 
provides for appropriation of water for a specified beneficial use for 
a specified season of use according to the applicable state law. A 
cooperative range improvement agreement authorizes the development of 
and provides the terms, specifications, and

[[Page 39463]]

conditions for the construction, maintenance, or abandonment of a water 
development or other range improvements. The permittee or lessee and 
BLM share the cost of and title to the development; not all the funds 
used for a water development are public. Moreover, BLM does benefit 
from water developments, regardless of funding, because water 
developments improve grazing management and watershed conditions.
    One comment urged BLM not to implement the proposed change because 
it would encourage more livestock water developments to the detriment 
of wildlife.
    Ownership of water rights does not affect the approval of water 
developments. Further, BLM disagrees that encouraging more livestock 
water developments would harm wildlife. Water developments are 
constructed to improve grazing management and watershed condition. 
Before BLM authorizes a water development, the development is analyzed 
in accordance with NEPA. Such analysis will consider the development's 
impacts on wildlife, positive as well as negative, and the ultimate 
authorization would include the mitigation measures necessary to limit 
any negative impacts.
    Several comments stated that BLM should not acquire or retain water 
rights for livestock use on public lands.
    BLM disagrees with this statement as contrary to current and 
proposed regulations, and contrary to the intent of most state water 
laws to put water to beneficial use by the senior appropriator and 
claimant. Neither the current regulations nor this final rule prevents 
BLM from filing on water rights now or prospectively, or filing jointly 
with a permittee or lessee, when it is in the interest of good 
rangeland management, supports meeting the objectives of BLM land use 
and activity plans, and is in accordance with state law.
    One comment stated that the changes made in the BLM grazing 
regulations in 1995 that require livestock operators and BLM to use 
cooperative agreements to authorize new permanent water developments 
and direct the United States, if allowed by State water laws, to 
acquire livestock water rights on public lands, should be retained in 
the grazing rule.
    The final rule requires BLM to use cooperative range improvement 
agreements to authorize all new permanent water developments under 
section 4120.3-2(b). The intent of the rule is to provide greater 
flexibility to the United States in this regard.
    One comment recommended that BLM better explain its need to pursue 
water rights cooperatively with the permittee.
    Under the current grazing regulations, BLM must seek to acquire, 
perfect, maintain, and administer state-based livestock water rights in 
the name of the United States, to the extent allowed by state law. BLM 
therefore has little flexibility to seek alternative arrangements with 
permittees. We expect that the increased flexibility allowing 
cooperative pursuit of livestock water rights to stimulate greater 
permittee and lessee support for the development of additional water 
resources on public land in accordance with resource objectives found 
in BLM land use plans, allotment management plans, activity plans, and 
vegetation management plans. This will contribute to an overall 
beneficial effect on vegetation resources. Having determined that 
permittees and lessees can hold livestock water rights, BLM may be able 
to negotiate better cooperative agreements, resulting in improved 
cooperation among BLM, states, and permittees and lessees.
    One comment recommended that BLM discuss the environmental 
consequences to sensitive wildlife and plants if BLM were to retain the 
existing provision on water rights, that is, solely acquire livestock 
water rights from the state, without cooperatively sharing that right 
with a permittee or lessee.
    BLM has observed a significant decrease in the number of water-
related range improvements (especially reservoirs and wells) since 
adopting the existing regulations in 1995. It is widely recognized that 
water-related range improvements may be beneficial to sensitive 
wildlife and plants. One reason BLM is proposing to change the existing 
regulations is to provide an incentive for operators to install water-
related range improvements, and thereby potentially benefit sensitive 
wildlife and plants.
    Another comment stated that it is unclear whether BLM's ability to 
make changes in livestock management to protect sensitive wildlife, 
plants, and their habitat will be affected by the permittee or lessee 
having shared water rights.
    BLM's ability to make changes in livestock management to protect 
sensitive wildlife, plants, or their habitat will not be affected by 
permittee or lessee sharing ownership of livestock water rights. The 
current grazing regulations, at section 4130.3-3, provide BLM with 
authority to make changes to the terms and conditions of a grazing 
permit or lease when management objectives are not being met or when 
grazing does not conform to the provisions of subpart 4180 
(Fundamentals of Rangeland Health and Standards and Guidelines). This 
provision is not changed in the final rule. Permittee or lessee 
ownership of livestock water rights does not affect BLM's management 
discretion and authority.
    Many livestock water rights are currently held by permittees or 
lessees, or jointly owned with BLM. BLM has seen no evidence that 
holding a livestock water right discourages cooperation or compliance 
with the terms and conditions of grazing permits. Nor is there evidence 
that BLM's ability to enforce and administer other provisions of the 
grazing regulations is affected by a permittee or lessee holding a 
livestock water right.
    One comment recommended that BLM clarify its ability to control water 
at a spring if the water rights are shared with a permittee or lessee.
    Shared livestock water rights are not expected to impair BLM's 
ability to control water at a spring. In cases of jointly held water 
rights, water cannot be moved from the source without the consent of 
both owners, and neither owner can prevent usage of the water at its 
source by the other owner.
    Two similar comments stated it is extremely important for BLM to 
seek ownership of water rights where allowed by state law, and that if 
BLM authorizes a water development on public land, the associated water 
rights should belong to the public. One of the commenters stated that 
there is no more important resource for fish and wildlife in the arid 
west than water. A third comment expressed a variation of this concern.
    The BLM agrees that water is an important resource for fish and 
wildlife in the West. The proposed rule does not mean BLM will not seek 
ownership of livestock water rights when allowed by state law. Rather, 
the proposed revision will allow BLM increased flexibility to seek 
alternative approaches to ensuring that water developed on public lands 
can be used to benefit multiple uses, including wildlife uses. Use of 
water on public land for wildlife, recreation, mining, and other uses 
will continue with rights for those uses usually in the name of the 
United States.
    A comment asserted the need for BLM to have flexibility in 
cooperatively pursuing water rights with the permittee or lessee. The 
comment stated that we should make it clear whether under a cooperative 
water right BLM would have the senior water right.
    The increased flexibility provided by the final rule may stimulate 
greater permittee and lessee support for the

[[Page 39464]]

development of additional water resources on public land. These 
resources would be developed in accordance with resource objectives 
found in BLM land use plans, allotment management plans, activity 
plans, and vegetation management plans, contributing to an overall 
beneficial effect on vegetation resources. Agreeing that permittees and 
lessees can hold livestock water rights should enable us to negotiate 
better cooperative agreements, and in turn leading to improved 
cooperation between BLM, states, permittees, and lessees.
    Whether the United States holds a senior livestock water right in 
joint-ownership situations would depend upon individual circumstances 
and priority dates under applicable state water law. BLM's ability to 
negotiate the terms of joint ownership agreements with permittees is 
critical in being able to achieve acceptable settlement to avoid 
litigation of water rights and to enhance accomplishment of federal 
responsibilities in land management.
    One comment asked whether removing the provision that BLM can 
acquire livestock water rights would put the state in a position where 
it could prevent BLM from holding livestock water rights. The comment 
also asked whether this revised provision pertains only to livestock 
waters, or also to BLM filings for wildlife, fish, or instream flow.
    States control their water law procedures for granting, 
adjudicating, and administering livestock water rights, independent of 
the content of the Federal grazing regulations. Therefore, regardless 
of whether the existing regulations remain in place or whether the 
proposed rule is adopted, states may prevent BLM from holding livestock 
water rights. In fact, after 1995, when the grazing regulations were 
changed to require the United States to file for livestock water ``to 
the extent allowed by State law,'' two states--Nevada and Arizona--
enacted laws to prevent BLM from claiming livestock water rights.
    The grazing regulations address state water rights for livestock 
watering purposes, not other purposes. The regulations therefore do not 
affect other potential BLM filings, such as for fish, wildlife, or 
instream flow.
    One comment pointed out that BLM has authority and discretion to 
apply penalties for specific prohibited acts. The comment stated that 
BLM may withhold, suspend, or cancel a grazing permit, and recommended 
clarification of the effect of sharing water rights if BLM needs to 
impose a penalty for a prohibited act if the permittee had a shared 
livestock water right on that allotment. The comment stated that a 
state water right can be looked upon as a property right and asked 
whether this could make it difficult for BLM to transfer a canceled 
permit to a new permittee.
    BLM's authority and discretion to impose penalties for prohibited 
acts is independent of and unaffected by ownership of livestock water 
rights. BLM's authority to take action under subpart 4140 (Prohibited 
Acts), subpart 4150 (Unauthorized Grazing Use) and subpart 4160 
(Administrative Remedies) is not affected by the name in which the 
water right is held. Thus, when a permittee engages in a prohibited act 
that triggers BLM's authority to suspend or cancel the grazing permit 
(e.g., grazing in violation of the terms and conditions of the permit), 
BLM may take appropriate action, regardless of who owns the water 
right. Indeed, even where a permittee has sole ownership of a livestock 
water right, BLM's authority to issue a new permit is unaffected. 
(Contrary to the way the comment stated the question, BLM does not 
transfer a canceled permit. BLM would issue a new permit, which may 
have terms and conditions reflecting the availability of less water for 
watering livestock within the allotment if the former permittee 
retained the water rights, unless the new permittee has acquired the 
water rights from the former permittee). The suspended or canceled 
permittee may sell or otherwise transfer its water rights in the 
absence of its ability to make use of the water right by grazing on 
public lands.
    Another comment stated that it is unclear how cooperative water 
rights will affect BLM's ability to manage sensitive wildlife and 
plants on an allotment, and suggested that BLM management would become 
less flexible if water rights become cooperative.
    The proposed water right policy changes would have no effect on 
water resources as long as the water resources remain available for use 
on public land. Also, the changes in the final rule should have no 
effect on special status species, as the changes largely provide 
clarification of the existing regulations or bring regulations into 
compliance with court rulings.
    BLM does not anticipate significant impacts on special status 
species from the new livestock water rights policy for several reasons. 
First, the number of new water developments on which permittees would 
be able to claim livestock water rights will be very small relative to 
the total number of water sources on public land. Before such 
developments are constructed, BLM will analyze them under NEPA to 
identify potential impacts on special status species, and impose terms 
and conditions in the cooperative range improvement permit to protect 
those species. Current land use management plans, activity plans, 
grazing permits, right-of-way permits, and other land use 
authorizations govern the usage of water sources that have already been 
developed. They also govern usage of undeveloped water sources that 
provide livestock water. A claim for a livestock water right by a 
grazing permittee on existing undeveloped or developed water sources 
would not be capable of changing on-the-ground management at the source 
without explicit authorization from BLM.
    One comment stated that ``giving up'' water rights inhibits BLM's 
flexibility in making management decisions and has the potential for 
impacts on water resources.
    We disagree that BLM is ``giving up'' any of its water rights or 
its ability to obtain new water rights under state law. Moreover, the 
final rule will not result in less flexibility for water usage on 
public lands. In accordance with FLPMA's requirement of multiple use 
management, use of water on public land for wildlife, recreation, 
mining, and other uses will continue with rights for those uses usually 
in the name of the United States. Section 4130.3-3 provides BLM 
authority to make changes in the terms and conditions of a grazing 
permit or lease when it authorizes active use or a related management 
practice that does not meet management objectives or otherwise does not 
conform to the standards and guidelines established under subpart 4180. 
Usage of public lands is also subject to BLM land use authorizations, 
which contain appropriate terms and conditions to support continued 
multiple uses on public lands. Thus, the number of AUMs in a grazing 
permit or lease, or any other term or condition, is unrelated to the 
extent of state-granted water rights. Also, many livestock water rights 
are currently held by permittees, or jointly owned with BLM, and BLM 
has not seen evidence that holding a livestock water right discourages 
cooperation or compliance with terms and conditions of grazing permits.
    One comment expressed concern that, although the rule stipulates 
livestock water development, the holder of the water right could 
subsequently request a transfer of use for some other purpose. The 
comment stated that this policy sacrifices future public value and 
multiple use opportunities that water might provide, such as in-stream 
flows, wildlife habitat, and recreation use. The comment went on to say 
that allowing

[[Page 39465]]

private acquisition of a water right gives ownership of a public 
resource to a private entity in perpetuity, and concluded that, without 
landowner control of water, public benefit and associated land 
management opportunities will be severely restricted.
    States have control over their own water law procedures regardless 
of the content of Federal grazing regulations. The 1995 regulations 
acknowledged this control by directing the United States to acquire 
stock watering rights ``to the extent allowed by State law.'' Before 
1995, permittees were able to file joint water rights applications with 
the United States on livestock water sources.
    The concerns raised in the comment related to removing the 
requirement that water rights for livestock use be held in the name of 
the United States are unlikely to occur. An increase in the number of 
water rights for livestock use on public lands held in the name of 
permittees or lessees is probable, but unlikely to compromise BLM's 
ability to manage public lands in accordance with FLPMA's multiple use 
mandate. Use of water on public land for wildlife, recreation, mining, 
and other uses will continue with water rights for those uses usually 
in the name of the United States. By agreeing that permittees and 
lessees can hold livestock water rights, BLM anticipates that it will 
be able to negotiate better cooperative agreements, resulting in 
improved cooperation between BLM, states, and permittees and lessees. 
Ownership of water rights by permittees will have no effect on title to 
the land, since land remains in the ownership of the United States. 
Exchanges or preference transfers resulting from permittee ownership of 
water rights for livestock use could occur, although BLM does not 
expect them to be common. When they occur, they can often be resolved 
through negotiated settlements among all parties.
Section 4120.5-2 Cooperation With Tribal, State, County, and Federal 
Agencies
    We amended this section in the proposed rule by adding a new 
paragraph (c) adding state, local, and county-established grazing 
boards to those groups we routinely cooperate with in administering 
laws and regulations relating to livestock, livestock diseases, and 
sanitation. Field-level range improvement and allotment management 
planning programs will benefit from the additional perspective that 
locally established grazing advisory boards could provide.
    In the final rule, we have amended paragraph (c) to add Tribal 
grazing boards to the list of entities with which we are required to 
cooperate. We also modified the language in paragraph (c) to make it 
clear that BLM is required to cooperate only with Tribal, state, 
county, or local grazing boards that are established under government 
authority, as opposed to private organizations that assume the title 
``grazing board.'' In addition, we amended the heading of the section 
and the introductory text so that they refer to Tribal as well as the 
other government agencies.
    Many comments supported the addition of paragraph (c) to section 
4120.5-2. These comments gave a variety of reasons.
    A comment stated that the regulations should require agency 
cooperation with state, county, and local grazing boards, because the 
creation and use of such boards would give BLM land managers direct 
resource-related information from subject matter experts in the local 
areas, increasing our ability to devise appropriate strategies for 
managing public lands under the multiple-use mandate. Another supported 
the amendment because state and local governments and local citizens 
have more at stake in the health of the land in their area than does 
BLM. The comment said that where state and local governments have 
established grazing advisory boards to provide for the health and 
management of public lands in their jurisdiction, they should be given 
maximum opportunity to do so. Other comments supported the proposed 
provision because consultations between grazing boards and BLM 
officials will provide for improved working relations on issues of 
significant importance to all stakeholders, and the new provision also 
fulfills statutory and regulatory requirements for consultation, 
cooperation, and coordination. One comment stated that grazing advisory 
boards can be used to help resolve conflicts between the agency and 
allotment owners, while another said that local grazing advisory boards 
allow for more efficient use of agency resources and money.
    BLM intends cooperation with grazing boards to provide BLM land 
managers local resource-related information from subject matter experts 
in local areas, thus increasing BLM's ability to develop and recommend 
appropriate strategies in developing allotment management plans and 
planning range improvements. BLM agrees that cooperation with local, 
county, and state agencies, governmental entities, and grazing boards 
established by state, county, and local governments will help us in 
considering how best to apply land management practices and spend range 
improvement funds. Cooperation with all groups and individuals, 
including Tribal entities, to achieve the objectives of grazing 
management, is required in section 4120.5-1 of the existing grazing 
regulations. Existing policy and law provides for the consultation, 
cooperation, and coordination with these groups as well as others. BLM 
recognizes that these entities have a high stake in promoting healthy 
public lands in their areas. We therefore also intend the provision to 
direct BLM field managers to cooperate with state, county, and local 
government boards in carrying out the boards' functions. That is, we 
will participate in their meetings, provide information on request when 
it is legal and appropriate to do so, answer inquiries, provide advice, 
and generally interact with the boards in a cooperative manner. The 
amended regulations would formalize the role of grazing boards in 
providing input and helping to avoid and/or resolve conflicts between 
BLM and grazing permittees and lessees. However, it is not the intent 
of the regulations to confer upon any grazing board cooperating agency 
status.
    One comment stated that BLM should provide an opportunity for local 
collaborative groups to be creative and proactive in the management of 
local public lands. The comment added that private lands adjacent to 
the public lands--often the base property for permittees--are usually 
the most important habitat (for example, critical winter range) for 
many wildlife species.
    BLM agrees that informal collaboration with local publics is 
beneficial to management of public lands and recognizes that adjacent 
private lands and land and water base properties often provide 
important wildlife habitats, for the same reasons that historically 
these lands were more likely to have been homesteaded or otherwise 
converted from public domain to private ownership. Our regulations at 
sections 4120.5-1 and 4120.5-2 require us to cooperate with individuals 
and other local (along with Federal, state, and Tribal) entities, to 
the extent appropriate and consistent with the applicable laws of the 
United States, to achieve the objectives stated in the regulations. 
However, the only requirement added in section 4120.5-2 is that we 
cooperate with government and government-created boards, not informal 
citizen groups, in the administration of laws and regulations relating 
to livestock, livestock diseases, sanitation, and noxious weeds.

[[Page 39466]]

    Many comments opposed the addition of paragraph (c) to section 
4120.5-2. These comments also gave a variety of reasons.
    One comment stated that the provision gives the impression that 
grazing board concerns have greater weight than the interests of other 
groups. The comment said that the perspectives of these other groups 
can also be valuable to the BLM decisionmaking process. Others stated 
that it will reduce BLM's role as an independent land management 
agency, and that it will duplicate or supplant the current arrangement 
BLM has with, and will undermine the efforts of, the RACs.
    As a general matter, BLM considers the views of all stakeholders 
providing input into BLM's decisionmaking process, but will not be 
constrained in its management by input from grazing boards. This means 
that, assuming we have the manpower, we will attend their public 
meetings when invited, provide information when requested, and invite 
their input when appropriate. BLM will cooperate with the boards to 
facilitate their review of range improvements and allotment management 
plans on public lands, but we will retain our independent 
decisionmaking role.
    The role of the RACs is broader, in that it also encompasses input 
into and review of the standards and guidelines for grazing 
administration under subpart 4180. There may be some overlap among 
these groups in the discussion of grazing allotment management issues. 
Nevertheless, this input will be valuable to BLM, broadening 
perspectives as to the issues. As a result, we expect that our 
decisionmaking process will be more effective and our data will be more 
comprehensive. Of course, laws, regulations, policy, and a multitude of 
other factors also guide and direct BLM's decisionmaking process.
    A comment from a state wildlife management agency stated that 
specific language should be added to paragraph (c) to address 
appropriately the requirements for consultation with state wildlife 
management agencies called for in several Federal laws, including the TGA.
    Section 4120.5-1 requires BLM to cooperate, to the extent 
appropriate, with Federal, state, (including state wildlife management 
agencies), Tribal, and local government entities, institutions, 
organizations, corporations, associations, and individuals to achieve 
the objectives of the regulations in part 4100. Section 7 of the ESA 
requires formal consultation with FWS and/or NOAA Fisheries if a 
federally-listed species may be adversely affected due to a proposed 
action. Furthermore, the grazing regulations specifically require BLM 
to consult with states having lands or responsibility for managing 
resources within the area--
    ? Before adjusting allotment boundaries,
    ? Before apportioning additional livestock forage,
    ? Before implementing changes in active use,
    ? Before closing allotments or modifying grazing for 
immediate protection of resources,
    ? During the preparation of allotment management plans,
    ? Before revising or terminating allotment management plans, 
or issuing or renewing grazing permits or leases, including 
nonrenewable permits, and
    ? Before modifying the terms and conditions in permits or leases.
    No additional language is necessary in the grazing regulations to 
ensure coordination with state wildlife management agencies.
    One comment stated that paragraph (c) should be removed because 
many states, counties, and local areas do not have any established 
grazing boards. Another stated that it is not clear how these grazing 
boards are defined or established, nor what it would take for a grazing 
board to qualify as ``established.'' One comment stated that paragraph 
(c) was tantamount to the reestablishment of grazing advisory boards, 
the authority for which expired on December 31, 1985 (43 U.S.C. 1753(f)).
    The establishment of grazing boards is at the discretion of state, 
county, and local governments, and is not required or authorized by 
BLM. This rule change formally recognizes the benefit of cooperating 
with existing and any future Tribal, state, county, or local 
government-established grazing boards in reviewing range improvements 
and allotment management plans. Each specific grazing board, or the 
governmental entity creating or authorizing it, determines the grazing 
board's establishment, internal organization, and role.
    One comment stated that BLM should include other groups and boards 
representing various public land resource interests in the local area 
(such as Tribal Associations) in section 4120.5-2(c), because many of 
these groups and agencies utilize BLM lands.
    In section 4120.5-2 of the grazing regulations, the authorized 
officer is required to cooperate, to the extent consistent with 
applicable laws of the United States, with the involved state, county, 
and Federal governmental agencies in administering certain laws and 
regulations. Section 4120.5-1 requires cooperation, to the extent 
appropriate, with Federal, state, Tribal, and local entities, as well 
as individuals, institutions, organizations, corporations, and 
associations to achieve the objectives of grazing management. 
Cooperation with grazing boards, where they exist, can give BLM land 
managers resource-related information from local subject matter 
experts, thus increasing our ability to develop appropriate strategies 
for managing grazing allotments and developing range improvements under 
the multiple-use mandate. We have added Tribal associations to 
paragraph (c) of section 4120.5-2 in response to the comments.
    One comment suggested that we expand the scope of paragraph (c) to 
require cooperation with local grazing boards as to other elements of 
rangeland management. The comment stated that these groups could assist 
with the resolution of such issues as conflicts between permittees and 
other users of the public lands and in designing monitoring programs.
    Tribal, state, county, and local government-established grazing 
boards are independent entities, set their own agendas, select their 
own members, and determine the level of their interest in reviewing 
allotment management plans and range improvements. Under this rule, BLM 
will not establish, sanction, or direct the function of grazing boards. 
BLM's role, as identified in the grazing regulations, is to weigh any 
input from the grazing boards as well as from others as we consider 
allotment management plans and range improvements. Under section 
4120.5, BLM coordinates with Federal, state, Tribal, and county 
government entities and RACs on a wide variety of public land 
management issues and proposed actions.
    One comment stated that grazing boards should be consulted but 
should remain autonomous from RACs, as provided in the TGA. Another 
stated that grazing boards comprised of members of the general public 
may have personal concerns or pet issues that should not affect BLM 
management practices.
    Under the proposed grazing regulations, grazing boards established 
by state, county, and local government and RACs will remain as distinct 
organizations. The grazing advisory boards referred to in the TGA were 
terminated in 1974 in accordance with Section 14 of the Federal 
Advisory Committee Act of 1972 (5 U.S.C. App. 1), and should not be 
confused with the grazing boards in the proposed grazing regulations. 
These grazing boards are

[[Page 39467]]

neither established nor sanctioned by BLM. Partly in response to the 
confusion and concerns demonstrated by these comments, we are amending 
paragraph (c) in the final rule to add the word ``government'' after 
the word ``local.'' This should make it clear that the grazing boards 
referred to in the provision with which BLM must cooperate in 
administering livestock laws are only those created or sanctioned by 
state, county, Tribal, or local government entities.
    One comment suggested that only affected permittees, and not 
individuals from other locations, should be consulted regarding section 
4120.5-2, ``Cooperation with State, county and Federal agencies.''
    That section addresses cooperation with Tribal, state, county and 
Federal agencies and thus does not include a consultation requirement 
with the interested public, that is, individuals. The section does 
require BLM to cooperate with Tribal, state, county, and other Federal 
agencies regarding the administration of laws and regulations related 
to livestock, livestock diseases, sanitation, and noxious weeds. No 
changes were made in the final rule as a result of this comment. BLM 
believes it is important to continue to work cooperatively with other 
governmental authorities regarding the administration of laws and 
regulations related to livestock, livestock diseases, sanitation, and 
noxious weeds.
    One comment expressed concern that the rule may lead to 
inconsistency and inefficiency between BLM and the Forest Service in 
the areas of water rights, management of ``federal trust'' resources, 
range improvement ownership, temporary nonuse, prohibited acts, the 
definition and role of the interested public, and the ability of the 
agencies to ensure that fish and wildlife are managed in a sustainable 
manner across administrative boundaries. One comment stated that, 
although the FWS is not specifically mentioned in the FEIS, 
consultation with the Service should occur as required under Section 
7(a)(2) of the ESA (50 CFR 402.14).
    BLM will coordinate and consult with the Forest Service and state 
agencies when administering the grazing program. Consistency with the 
Forest Service regulations, though desirable at times, is not necessary 
for implementing effective rangeland management practices. Specific 
inconsistencies between the regulations and policies of BLM and the 
Forest Service related to fish and wildlife resources have not been 
identified. In general, however, inconsistencies continue to exist 
largely because the two agencies have different statutory requirements 
that govern their regulations and policies. However, nothing in the 
proposed revisions will preclude BLM and the Forest Service from 
working across administrative boundaries to manage fish and wildlife in 
a sustainable manner.
    BLM consults with the FWS when an evaluation of a discretionary 
action results in a determination that there may be an effect on an 
endangered species. Although BLM coordinated with the FWS on various 
aspects of the rule, ultimately BLM concluded that the rule will have 
no effect. Consultation under Section 7(a)(2) of the ESA is not 
required under 50 CFR part 402 on an action that has no effect on an 
ESA-listed species.
    One comment referred to an MOU that BLM, the Forest Service, and 
the FWS signed with WAFWA to conserve the greater sage-grouse and its 
habitat. The comment stated BLM should consider the commitments of the 
MOU in the proposed revisions to grazing regulations.
    The WAFWA MOU outlines the roles of state and Federal partners 
throughout the 11 Western States in conservation of the currently-
occupied range of the sage-grouse. Our commitments under this MOU are 
compatible with grazing management. Under the MOU, BLM will continue to 
coordinate with the states and local working groups to develop state 
and local conservation strategies. The administrative changes in the 
final rule will have no effect on this coordination commitment. In 
addition, and to complement the WAFWA MOU commitments, BLM released the 
National Sage-Grouse Habitat Conservation Strategy in 2004. This 
strategy describes agency actions necessary to conserve the sage-grouse 
and its habitat on BLM land, and includes a detailed timeline of 
actions that BLM is implementing through agency directives. The grazing 
rule amendments will have no effect on BLM's implementation of the 
sage-grouse strategy.
    One comment urged BLM to include the FWS among the entities it must 
consult before changing grazing allotment boundaries under 43 CFR 4110.2-4.
    Where a proposal to undertake a discretionary action under the 
grazing regulations, such as designating or adjusting an allotment 
boundary under 43 CFR 4110.2-4, triggers ESA consultation requirements, 
BLM will meet those requirements. However, BLM does not believe it 
appropriate to list in its grazing regulations all instances where 
discretionary action taken under the regulations may trigger ESA 
consultation.
    One comment encouraged BLM to consider how the rule would affect 
the ability of local sage-grouse working groups to implement 
conservation actions for this species.
    The working groups and their commitments are outlined in the WAFWA 
MOU, and are unchanged by the proposed regulations. Site-level 
decisions remain within the purview and discretion of BLM field 
offices, and address sage-grouse habitat needs in an allotment-level 
assessment process outlined in the existing regulations, using local 
working group recommendations. BLM's ability to identify and react to 
sage-grouse habitat needs will not be affected by the proposed 
administrative adjustments of the grazing regulations.
Section 4130.1-1 Filing Applications
    In the proposed rule, we moved the provisions on determining 
satisfactory record of performance from section 4110.1 to section 
4130.1-1 on filing applications, where they more logically fit. We also 
amended the provisions to clarify the factors that we take into account 
in determining whether an applicant for a new permit has a satisfactory 
record of performance. The rule deems applicants for issuance of a new 
permit or lease to have a satisfactory record of performance if:
    1. The applicant or affiliate has not had a Federal lease canceled 
within the previous 36 months;
    2. The applicant or affiliate has not had a state lease canceled, 
for lands in the grazing district where they are seeking a Federal 
permit, within the previous 36 months; or
    3. The applicant or affiliate has not been legally barred from 
holding a Federal grazing permit or lease by a court of competent 
jurisdiction.
    One comment urged BLM not to adopt the proposed rule provision 
regarding satisfactory record of performance, stating that the proposed 
wording is an attempt to show favoritism to someone with past recent 
violations that did not occur on the allotment for which the applicant 
is applying. Another comment stated that permittees could avoid 
violations by timing applications to particular grazing allotments 
where they had not committed a violation in the last 3-year period.
    The changes made provide consistent direction on what constitutes a 
satisfactory record of performance. Determining a satisfactory record 
of performance is not limited to grazing permit or lease violations on 
the particular allotment for which an

[[Page 39468]]

application is being made. Section 4130.1-1(b)(2)(i) states that the 
authorized officer will consider applicants for a new or transferred 
preference to have a satisfactory record of performance when the 
applicant has not had any Federal grazing permit or lease canceled for 
violation of the permit or lease within the 36 months preceding the 
date of application.
    One comment suggested that BLM should subject a permit applicant 
who has a poor management record to a public hearing as part of its 
process for determining whether the applicant has a satisfactory record 
of performance. The author of the comment stated that legitimate users 
of the land do not need to have someone who is known to ignore good 
range management standards abusing the land or BLM's staff, and added a 
request for open hearings so that the public interest could be heard.
    BLM will determine whether applicants for renewal or issuance of 
new permits and leases and any affiliates have a satisfactory record of 
performance. BLM agrees that a poor operator who abuses public land is 
detrimental to sound land management. BLM will not approve such renewal 
or issuance unless the applicant and all affiliates have a satisfactory 
record of performance, as provided in section 4130.1-1(b). BLM does not 
believe that any useful purpose would be served by including a public 
hearing as part of the process of determining whether an applicant for 
a permit or lease has a satisfactory record of performance. If rejected 
applicants appeal BLM's decision to deny them a permit or lease based 
on an unsatisfactory record of performance, they would have the right 
to a hearing of their appeal before an Administrative Law Judge under 
43 CFR part 4, which would be open to the public.
    Several comments urged BLM to remove section 4130.1-1(b)(2)(ii), 
stating that cancellation of a state grazing permit should not be 
grounds for determining that a permittee or applicant has an 
unsatisfactory record of performance. The comments stated that some 
state rules go beyond practices directly related to livestock grazing. 
Another comment stated that the provision exceeds BLM's authority under 
Section 302(c) of FLPMA (43 U.S.C. 1732(c)).
    The provision in question provides standards for determining that 
an applicant has a satisfactory record of performance. BLM will find a 
record of performance satisfactory if the applicant has not had a state 
permit or lease of lands within the allotment for which the applicant 
seeks a Federal authorization, canceled for violation of its terms or 
conditions within the preceding 36 months. Note that the threshold in 
the regulations is cancellation, in whole or in part, for violation of 
the state permit or lease rather than for other reasons under state 
law, such as cancellation because the state declines to issue permits 
for the particular time or land or the state has disposed of the land. 
Section 302(c) states that any ``instrument'' authorizing the use of 
public lands shall include a provision authorizing BLM to revoke or 
suspend the instrument upon a final administrative finding of a 
violation of any term or condition of such instrument. Section 302(c) 
does not limit the scope of what BLM may require of an applicant.
    One comment requested BLM to clarify whether a person has a 
satisfactory record of performance if he is damaging the public lands, 
but has not had a Federal permit or lease canceled, has not had a state 
permit or lease canceled on the pertinent allotment, and has not been 
barred from holding a Federal permit or lease by a court of competent 
jurisdiction. On the other hand, another comment stated that requiring 
a permittee to apply for renewal will increase the importance of the 
performance review in the renewal process, but could lead to using the 
performance review as an excuse not to renew a permit.
    BLM will consider the question whether a person is damaging the 
public lands in determining whether he is in substantial compliance 
with the terms and conditions of his permit or lease and with the 
regulations applicable to the permit or lease. Whether or not there has 
been a cancellation, BLM may find a permittee not in substantial 
compliance with permit or lease terms and conditions or with the 
regulations, and consider this finding in determining whether to renew 
the permit or lease. BLM will also consider whether the lack of 
substantial compliance was due to circumstances beyond the control of 
the permittee or lessee.
    One comment suggested that section 4130.1-1(b)(2) also provide that 
a party would not be considered to have a satisfactory record of 
performance if he--
    (1) Obstructs public access to public lands;
    (2) Grazes livestock after the end of the grazing period;
    (3) Removes water sources used by wildlife; or
    (4) Poaches or kills wildlife.
    A permittee or lessee who does things like those listed in the 
comment may be found not in substantial compliance with the terms and 
conditions of the permit or lease, and thus not to have a satisfactory 
record of performance.
    One comment stated that BLM should change its qualifications to 
receive a grazing permit so that applicants with a criminal background 
are barred from getting a permit.
    We have considered the comment and decided that it would be 
impractical for BLM to bar applicants with a criminal background from 
getting a grazing permit, unless the criminal conviction was directly 
related to the loss of a Federal or state grazing permits or leases due 
to violations, or the applicant was barred from holding a Federal 
grazing permit or lease by a court of competent jurisdiction as 
provided in the final rule in section 4130.1-1 et seq. Furthermore, it 
is not Federal or BLM policy to prevent a person who has been convicted 
of a crime, served his sentence, and been rehabilitated, from obtaining 
gainful employment.
    One comment stated that BLM should consider increasing the 
``statute of limitations'' on conditions for having a satisfactory 
record of performance in section 4130.1-1(b)(2) to more than 3 years.
    The 36-month period has been in the regulations since the 
requirement to have a satisfactory record of performance was added in 
the 1995 rule. We have no evidence that this threshold is not working, 
and have not changed it in this final rule.
    In the proposed rule we invited comments on whether we should 
require an application for renewal of a grazing permit or lease (68 FR 
68456). Several comments addressed this issue.
    Several comments urged BLM to change section 4130.1-1(a) to provide 
that only new applicants for grazing permits or leases need to submit a 
formal application, so that it is clear that the holder of an expiring 
10-year term permit or lease does not have to submit a formal 
application for renewal of that permit or lease. These comments stated 
that Section 402(c) of FLPMA provides that, so long as the lands under 
the permit or lease remain available for livestock grazing, the holder 
of the expiring permit has complied with applicable regulations and 
accepts the terms and conditions of the new permit or lease, the holder 
of the expiring permit must be given first priority for receipt of the 
new permit or lease. They offered several policy reasons for not 
requiring preference holders to reapply for permits every ten years, 
stating that requiring such applications would allow the agency too 
much discretion; be used by environmental groups as tools to

[[Page 39469]]

force review of environmental conditions on allotments; consume agency 
resources; burden permittees and lessees; increase the importance of 
performance reviews and perhaps lead to using the performance review as 
an excuse to deny a new permit; have allowed or will allow agency 
personnel to use the lease renewal process to extract inappropriate 
concessions from, or impose inappropriate requirements, on permittees 
and lessees on environmental and other issues. They stated that FLPMA 
allows a preference holder the right to renew. One contended that, if 
grazing allotments are designated in the land use plan, they should not 
be considered discretionary activities requiring periodic review before 
renewal.
    One comment, however, felt that permittees and lessees should 
submit an application for renewal when their permits or leases expire. 
It stated that the renewal application should be thoroughly reviewed by 
BLM before a decision is made to renew.
    The first group of comments is correct in that BLM must give the 
holder of an expiring permit or lease priority for receipt of a new 
permit or lease, so long as the conditions of Section 402(c) of FLPMA 
are met. However, there is administrative utility in requiring 
application for the renewal of an expiring permit or lease. Therefore, 
we have not adopted this suggestion in the final rule. The regulatory 
text does not explicitly require an application, but by referring to 
``the applicant'' it implies the requirement. Submitting a permit or 
lease renewal application by the holders of an expiring permit or lease 
documents their interest in their continued use of the permit or lease 
and that they are aware that their permit or lease will be expiring and 
must be renewed. Submitting an application for renewal also allows an 
opportunity for the holders of the expiring permit or lease to apply 
for changes in its terms and conditions that they may desire, and 
provides them certainty under the APA (5 U.S.C. 558 (c)(2)) as to 
continued use of their permit or lease in the event that its renewal is 
delayed due to BLM's inability to process the application in a timely 
manner. The application will also be a useful element of the 
administrative record.
    A comment stated that BLM should not renew grazing permits when 
they expire. Ranchers should not be allowed to graze cattle for 
personal gain on public land.
    The TGA, FLPMA, and other laws authorize grazing on public land for 
private business purposes.
Section 4130.1-2 Conflicting Applications
    In the proposed rule we made no changes in this section, which 
provides for how we resolve the situation when more than one qualified 
applicant seeks a permit or lease for grazing use of the same public 
lands or where additional forage or acreage becomes available. However, 
questions raised in comments indicated a degree of confusion as to the 
meaning of one paragraph of this section, and suggested that we should 
change the wording for purposes of clarification.
    Section 4130.1-2(d) provides that when BLM must decide among 
conflicting applicants who is to receive grazing use, it may consider, 
along with the several other factors listed in this section, ``[p]ublic 
ingress or egress across privately owned or controlled land to public 
lands.'' Several comments stated that BLM should remove paragraph (d) 
because ``[p]ublic access across private lands should be given 
voluntarily and never become a condition for consideration by BLM under 
any part of these regulations.''
    This provision first appeared in the regulations (Grazing 
Administration--Outside Grazing Districts and Exclusive of Alaska) in 
1968, in the following form:

    4121.2-1(d)(2) The Authorized Officer will allocate the use of 
the public land on the basis of any or all of the following factors: 
(i) Historical use, (ii) proper range management and use of water 
for livestock, (iii) proper use of the preference lands, (iv) 
general needs of the applicants, (v) topography, (vi) public ingress 
and egress across preference lands to public lands under application 
(where access is not presently available), and (vii) other land use 
requirements.

    Paragraph (d)(2)(vi) included a footnote that stated, ``Where the 
United States obtains such a right-of-way, it will assume 
responsibility therefore to the full extent authorized by law.'' The 
major rewrite of the regulations in the mid-1970s combined the 
regulations for inside and outside grazing districts. The provision in 
the current regulations is a ``carry over'' from the Section 15 grazing 
lands regulations. The regulation in its original form does in fact 
direct that, all other factors being equal, if there were several 
applicants for use of a specific tract of public land, and one 
applicant offered public access across their base property to the 
public lands and the others did not, we would choose the applicant that 
did, and obtain and manage a right-of-way across their lands. BLM 
obtains public ingress and egress across the successful applicant's 
base property and the successful applicant receives a grazing permit or 
lease, so that both parties benefit.
    We may consider changing this provision in a future rulemaking exercise.
    Other comments suggested that we amend the introductory text of 
section 4130.1-2 to provide that applicants with preference have 
priority for receipt of increased available forage, rather than that 
preference is treated co-equally with the other factors listed in 
paragraphs (a) through (h) of the section.
    Priority for preference holders in apportioning additional forage 
is already required by section 4110.3-1. It is unnecessary to restate 
this priority in this section. This section, however, directs BLM to 
consider the other factors in addition to preference, to resolve 
conflicts among applicants with preference.
Section 4130.2 Grazing Permits and Leases
    In the proposed rule, we revised paragraph (a) in this section to 
make it clear that the grazing permit or lease, as distinguished from 
other documents such as a grazing fee billing, is the document BLM uses 
to authorize grazing use for those who hold grazing preference on BLM-
managed lands. BLM also uses ``other grazing authorizations'' such as 
free use permits, exchange-of-use permits, and crossing permits to 
authorize grazing for preference and non-preference holders in limited 
circumstances. These are addressed in sections 4130.5 and 4130.6.
    We removed the phrase ``types and levels of use authorized'' from 
paragraph (a) and replaced it with the term ``grazing preference'' 
because the level of use, the forage amount expressed in AUMs, and the 
``type'' of use, whether active or suspended, are embodied in the term 
``grazing preference.'' We removed the term ``conservation use'' from 
this paragraph for reasons stated in the discussion of section 4100.0-5.
    We also removed the requirement in paragraph (b) that BLM consult, 
cooperate, and coordinate with the interested public prior to the 
issuance or renewal of grazing permits and leases. Comments and 
responses to this change can be found in the discussion of section 
4100.0-5 as well as below.
    We added a provision to paragraph (f) that requires BLM and the 
permittee or lessee to sign the permit or lease in order to validate it.
    We revised the provisions in paragraphs (g) and (h) on temporary 
nonuse and moved them to section 4130.4, which contains provisions for

[[Page 39470]]

authorization of temporary changes in grazing use in order to clarify 
the regulations. We removed all references to conservation use. Other 
changes to provisions on temporary nonuse are described in the 
discussion of that section.
    Some comments stated that the amendment of this section for the 
purpose of clarifying that the grazing permit or lease is the document 
that BLM uses to authorize grazing creates an unnecessary burden on BLM 
to prepare NEPA analysis before issuing a permit or lease. The comment 
stated that grazing use on public lands is authorized by the land use 
plan coupled with grazing preference, and that therefore NEPA analysis 
is not necessary when issuing a permit or lease.
    The Taylor Grazing Act directs BLM to authorize livestock grazing 
through a permit or lease. NEPA requires site-specific analysis of 
impacts before an agency can authorize activities on public land. Most 
land use plans do not meet site-specific NEPA analysis requirements for 
issuing permits or leases on individual allotments.
    A comment suggested that BLM should not state that the grazing 
permit or lease is the only document that authorizes grazing use 
because each year BLM may approve applications for grazing use under 
terms and conditions that do not exactly match the terms and conditions 
listed on the grazing permit or lease. Therefore, the comment went on, 
BLM should also consider the approval of such an application as a 
grazing authorization. BLM also should require proof of payment of 
grazing fees before allowing grazing.
    The TGA directs BLM to authorize livestock grazing through a permit 
or lease. FLPMA provides that a grazing permit or lease will have a 10-
year term with certain exceptions. BLM evaluates permits and leases 
before it issues them pursuant to its obligations under NEPA and its 
land use planning regulations. One outcome of this process is permit or 
lease terms and conditions of grazing use that are compatible with 
achieving multiple-use management objectives specified in BLM land use 
plans. The grazing regulations require that terms and conditions of 
permits and leases include, as a minimum: The allotment(s) to be 
grazed, the number of livestock, the period of use, and the amount of 
forage to be removed. Since forage growth and livestock operation needs 
can change slightly from year to year, BLM allows or requires adaptive 
minor adjustments in the number of livestock, use period, and amount of 
forage, so long as the adjustments are within the terms and conditions 
of the permit or lease and accord with applicable land use plans. These 
adjustments are documented by BLM case records, decisions, and grazing 
fee billings/payment records. Such adjustments become a part of the 
term grazing permit or lease for the period the adjustments are in 
effect. However, the term permit or lease is the document that 
authorizes the grazing use, not the application and paid grazing fee bill.
    Another comment suggested that grazing permit changes that do not 
affect the environment or change the terms and conditions of a permit, 
but only involve paper changes such as a transfer, should not be 
subject to NEPA, or at most should only involve a categorical exclusion.
    Addressing whether the issuance of a permit or lease that is a 
result of a preference transfer and that is substantially unchanged 
from the immediately preceding permit or lease should be subject to 
NEPA is not within the scope of this rulemaking. In a separate effort 
to streamline permitting processes, BLM is reviewing its current list 
of actions that are categorically excluded and examining whether a 
permit or lease that meets specific criteria also should be 
categorically excluded.
    Some comments suggested that a requirement for consultation, 
cooperation, and coordination with permittees or lessees should be 
reiterated at section 4130.2(f) in order to emphasize the importance of 
consultation regarding permit or lease terms and conditions.
    While we recognize the importance of coordinating with permittees 
and lessees when developing terms and conditions, there is no need to 
restate this requirement because it is redundant. The requirement for 
consultation, cooperation, and coordination with affected permittees or 
lessees before issuing or renewing grazing permits and leases is 
already provided for at section 4130.2(b).
    Numerous comments expressed displeasure with any reduction in the 
role of the interested public, and many cited the issuance or renewal 
of permits and leases as specific instances where the rule should not 
be changed. These comments stated that the issuance of a grazing permit 
or lease was a significant decision worthy of extensive public 
involvement. Comments also argued that reliance on NEPA's public 
participation opportunities was not sufficient, due to the backlog of 
grazing permit environmental assessments and the recent history of 
special legislation authorizing renewals without traditional NEPA 
compliance. Other comments supporting the rule described the grazing 
permit or lease as the decision that has suffered the most inefficiency 
because of the interested public consultation requirements. Some argued 
that grazing permits and leases should be processed in a timely manner 
and only BLM and permittees and lessees should be directly involved in 
this process.
    BLM issues or renews an average of nearly 2,000 permits and leases 
each year, and, thus, we view these as day-to-day grazing management 
decisions. Permits and leases implement decisions made in land use 
plans, allotment management plans and other grazing activity plans--
decisions made with significant public input. Many of the comments 
requesting continued interested public consultation actually raised 
broad allocation issues (i.e., whether grazing should occur at all) 
that would properly be addressed in a land use plan rather than at the 
permit issuance stage. There currently is a backlog of grazing permits 
requiring final NEPA compliance. BLM is working hard to eliminate this 
backlog as soon as possible. Under current funding levels, BLM is 
scheduled to complete full NEPA processing of all permits and leases by 
2009. Although timely NEPA participation may be temporarily delayed for 
some permits, the interested public will ultimately have the 
opportunity to participate in the NEPA process. If BLM contemplates any 
changes in levels of grazing use or in permit or lease terms and 
conditions, we will provide the interested public an opportunity to 
review and provide input during the preparation of any evaluation or 
other reports that the authorized officer may use as a basis for such 
changes. Such reports may include monitoring reports, evaluations of 
standards and guidelines, BAs or BEs, and any other formal evaluation 
reports that are used in the decisionmaking process. Also, the 
interested public will be notified of proposed decisions and retains 
the option to protest before a decision is final. This level of 
participation should achieve a balance that utilizes public input while 
allowing for timely processing of permits and leases. No changes have 
been made in the final rule.
    One comment stated that BLM should not grant priority for renewal 
of permits and leases to permittees and lessees who hold expiring 
permits and leases unless they, in addition to meeting the other 
criteria found at section 4130.2(e), have a satisfactory record of 
performance. This would make section

[[Page 39471]]

4130.2(e) consistent with the proposed rule at section 4130.1-1(b) and 
(b)(1).
    The existing regulations in section 4130.2(e)(2) require, under 
Section 402(c)(3) of FLPMA (43 U.S.C. 1752(c)(3)), that the permittee 
or lessee be in compliance with the rules and regulations and the terms 
and conditions in the permit or lease to have first priority for a new 
permit or lease. This provision is very similar to language at section 
4130.1-1(b)(1)(i) that addresses satisfactory performance. We 
determined that the language in this final rule is adequate.
    Another comment suggested that BLM should remove the requirement 
that acceptance of terms and conditions of a new permit or lease is 
required of holders of expiring permits and leases in order for them to 
receive priority for receipt of the permit or lease. It stated that 
this requirement is redundant to the statement that ``a permit or lease 
is not valid unless both BLM and the permittee or lessee have signed 
it,'' and that it is also an inappropriate condition upon which to base 
priority for renewal of a permit or lease.
    We have determined that retention of section 4130.2(e)(3) reflects 
criteria established in Section 402(c)(3) of FLPMA regarding priority 
to receive new permits and leases.
Section 4130.3 Terms and Conditions
    We added a new paragraph (b) to this section in the proposed rule 
specifying that when BLM offers a permit or lease, the terms and 
conditions may be protested and appealed unless the terms and 
conditions are not subject to OHA appeals, or the terms and conditions 
pertain to a permit or lease for grazing use of additional acreage 
under section 4110.4-1. We gave an example of terms and conditions that 
would be exempt from administrative appeal to OHA, namely those 
mandated by a biological opinion (BO) issued under the ESA. We also 
added paragraph (c) providing that if terms and conditions are stayed, 
BLM could authorize grazing use in accordance with section 4160.4. By 
adding this language, we sought to clarify that we are providing the 
opportunity to protest and appeal decisions that specify the terms and 
conditions of the permit or lease we are offering. In this final rule, 
we have removed the example of terms and conditions that are exempt 
from appeal presented at section 4130.3(b)(1). The proposed example was 
based on a policy articulated in two Secretarial memoranda, and those 
memoranda address the issue adequately.
    Some comments objected to the exemption from appeal for those terms 
and conditions resulting from a biological opinion. In cases where a 
biological opinion (BO) is the basis for additional terms and 
conditions in a grazing permit or lease, they stated that the affected 
permittee or lessee should be able to appeal those additional terms or 
conditions that are based on the biological opinion. They asserted that 
in those cases, as may be necessary for a full and true disclosure of 
the facts, where the BLM authorized officer's decision rests, in whole 
or in part, on a material fact not appearing in the agency's record, 
such as the material constituting a BE, BA, or biological opinion, the 
affected permittee should be entitled to an opportunity to rebut such fact.
    Currently, terms and conditions required in a BO, as well as 
implementation of a reasonable and prudent alternative if required in 
the BO, are the only terms and conditions not subject to OHA review. 
This exclusion from OHA review is based on Secretarial memoranda dated 
January 8, 1993, signed by Secretary Lujan, and April 20, 1993, signed 
by Secretary Babbitt. It has thus been the policy of the Department of 
the Interior that the Office of Hearing and Appeals (OHA) does not have 
the authority to review BOs issued under Section 7 of the ESA. Under 
these Secretarial memoranda, if BLM decides to implement a reasonable 
and prudent alternative set forth in a FWS BO, or if BLM implements the 
mandatory terms and conditions of a BO, OHA is not entitled to ``second 
guess'' the FWS findings in the guise of reviewing the BLM decision. 
Any review of FWS BOs is limited to the Federal courts pursuant to the 
review mechanism created by Congress in Section 11(g) of ESA (16 U.S.C. 
1540(g)). This issue is further addressed in the preamble discussion of 
section 4160.1. We dropped this provision because BLM believes the 
Secretarial memoranda signed by Secretaries Lujan and Babbitt provide 
sufficient clarity regarding the inability of OHA to review the merits 
of FWS biological advice. This example has been removed from the final 
rule.
    Some comments stated that BLM should remove the requirement that 
``grazing permits and leases shall contain terms and conditions * * * 
to ensure conformance to the provisions of subpart 4180'' at section 
4130.3(a) and section 4130.3-1(c). Subpart 4180 describes Fundamentals 
of Rangeland Health and Standards and Guidelines for Grazing 
Administration. The comments reasoned that this change would clarify 
that permits and leases must be in conformance to all of the provisions 
of part 4100 and the management objectives established by applicable 
land use plans. They felt that these provisions were redundant because 
standards and guidelines developed under subpart 4180 are made a part 
of land use plans and there is an existing requirement that livestock 
grazing activities conform to land use plans.
    It is true that terms and conditions included in permits and leases 
implement all the provisions of part 4100 pertinent to the permit or 
lease. The provision on conformance to subpart 4180 does not mean that 
the terms and conditions must only conform to the fundamentals of 
rangeland health, standards, and guidelines found in subpart 4180. They 
must also conform to the appropriate land use plans. The reference to 
subpart 4180 appears in this newly designated paragraph (a) (which was 
the entire section 4130.3 in the 1995 regulations) as a matter of 
emphasis. Management objectives from applicable land use plans also 
establish desirable outcomes that BLM strives to achieve. Terms and 
conditions of permits and leases should conform to and not hinder 
progress towards management objectives, fundamentals, and standards. 
BLM has considered these comments and has determined that, despite the 
redundancy pointed out by the comment, it would be best to continue to 
state plainly in the regulations that permits and leases must 
incorporate terms and conditions that ensure conformance to subpart 4180.
    Some comments stated that BLM should remove the proposed language 
at section 4130.3(b)(2) which would not allow protest or appeal of 
terms and conditions placed on grazing use on additional land acreage 
outside designated allotments. The comment stated that this would 
violate TGA Section 9 hearing rights relative to grazing use upon 
``additional land acreage'' within a Grazing District, and that there 
is no rational basis to treat appeal rights for permits issued for 
additional land acreage different from appeal rights for permits issued 
as a result of preference transfer or permit renewal.
    In response to this comment we have removed the provision at 
section 4130.3(b)(2) from the final rule.
    Comments suggested that BLM insert a standard term and condition 
into all grazing permits that states unequivocally that nothing in the 
terms and conditions of the permit shall be construed as affecting 
valid existing rights of way, easements, water rights,

[[Page 39472]]

land use rights, vested rights, or any other property rights of any kind.
    The comment expresses concern that the issuance of a grazing permit 
or lease and the BLM management of the public lands associated with the 
permit or lease may affect valid existing rights, including, among 
other things, ``property rights of any kind.'' The TGA provides that 
the Secretary ``shall make such rules and regulations * * * enter into 
such cooperative agreements, and do any and all things necessary to 
accomplish the purposes of'' the TGA ``and to insure the objects of 
such grazing districts, namely, to regulate their occupancy and use, 
preserve the land and its resources from destruction or unnecessary 
injury, to provide for the orderly use, improvement, and development of 
the range.'' BLM accomplishes these goals through grazing permits and 
leases, which authorize grazing use on the public lands. Typically, the 
terms and conditions of a permit or lease specify such things as 
seasons of use and numbers of livestock. If we were to adopt the 
comment and add a term and condition in grazing permits that would 
prohibit BLM from doing anything that would affect any valid existing 
rights or any other property rights of any kind, it would impose an 
unlawful limit on the Secretary's broad authority to regulate the use 
of the public rangelands. Because of the potential confusion the 
suggestion in the comment would create, because property rights are 
adequately protected by the U.S. Constitution, and because there are 
established avenues for seeking compensation for ``takings,'' we have 
not adopted the comment in the final rule.
    One comment suggested that BLM include a statement in section 
4130.3 that terms and conditions will include compliance with 
management goals and objectives.
    Authority to include terms and conditions in a grazing permit or 
lease to assist in achieving management goals and objectives is 
sufficiently addressed in section 4130.3-2.
    Another comment stated that the regulations should provide that the 
new permit or lease that BLM offers to the holder of an expiring permit 
or lease should reflect changes in terms and conditions that apply at 
the time of renewal, or reflect the terms and conditions of the expiring 
permit or lease until the terms and conditions are officially changed.
    When renewing a permit or lease, BLM must retain the discretion to 
authorize grazing use under terms and conditions that it determines to 
be appropriate, even if those terms and conditions are different from 
the permit or lease that recently expired. The final regulations also 
provide in section 4160.4 that, should OHA stay any term or condition 
included in a BLM decision that renews a permit or lease, BLM will 
continue to authorize grazing under the permit or lease, or the 
relevant term or condition thereof, that was in effect immediately 
before the decision was issued, subject to any relevant provisions of 
the stay order.
Section 4130.3-2 Other Terms and Conditions
    In the proposed rule, BLM proposed to remove paragraph (h) from 
this section. Paragraph (h) authorizes BLM to include in a grazing 
permit or lease a statement disclosing the requirement that a permittee 
or lessee provide reasonable administrative access to BLM across non-
federal lands owned or controlled by the permittee or lessee, for the 
orderly management and protection of the Federal lands under BLM 
management. BLM reasoned that the absence of such disclosure under the 
proposed rule would not affect the underlying principle that reasonable 
administrative access is an implied condition of grazing permits.
    In response to public comments, as explained below, we have 
restored paragraph (h) in this final rule. Paragraph (h) provides that 
optional terms and conditions include a ``statement disclosing the 
requirement that permittees or lessees shall provide reasonable 
administrative access across private and leased lands to the Bureau of 
Land Management for the orderly management and protection of public lands.''
    Several comments stated that the regulations should retain the 
provision in section 4130.3-2(h) regarding administrative access across 
private lands in order for agency staff to perform resource management 
activities on public lands efficiently. Comments expressed concern that 
removal of this provision might impede the agency's management of 
public lands, and pointed out that such access is an implied condition 
of a grazing permit. Other comments supported the removal of this 
provision, asserting that the agency should only have access across 
private property by permission of the land owner or to respond to an 
emergency. Some comments thought this provision should be retained 
because its removal would limit public access to public lands, 
misinterpreting the intent of this provision. This provision does not 
apply to public access across private land; it only applies to agency 
administrative access to perform necessary resource management 
activities on the public lands.
    In response to comments, the final rule retains the language at 
section 4130.3-2(h) that we considered removing in the proposed rule. 
Administrative access is an important component of BLM's ability to 
manage the lands for which it is responsible, including, but not 
limited to, Federal grazing lands. The provisions of paragraph (h) 
regarding administrative access refer to reasonable access across a 
permittee's or lessee's owned or controlled lands to reach Federal 
lands so that BLM, including BLM staff and third party contractors 
working for BLM, may perform necessary resource management activities 
on those lands. These include such activities as range use supervision, 
compliance checks, trespass abatement, monitoring of resource 
conditions, and evaluating the conditions of or the need for range or 
other improvements. Land management agencies, like any landowner, need 
appropriate access to the lands they manage. Efficient and reasonable 
access to, for example, grazing allotments, is necessary and is 
consistent with the partnership between grazing permittees or lessees 
and the agency to manage rangelands properly. Retaining paragraph (h) 
is the most effective and efficient means of informing the public, 
including interested parties, of the requirement that a permittee or 
lessee provide reasonable administrative access across lands owned or 
controlled by them to BLM for the orderly management and protection of 
the Federal lands under BLM management.
    One comment stated that BLM should discourage the use of 
supplemental feed on public land because such feed can introduce weeds 
and pollute water with excess nutrients.
    Supplemental feed, as referred to in section 4130.3-2(c), means a 
feed that supplements the forage available from the public lands and 
that the operator provides to improve livestock nutrition or rangeland 
management. BLM grazing regulations allow placement of supplemental 
feed, including salt, for improved livestock and rangeland management, 
but prohibit placement of supplemental feeds on public lands without 
authorization, or contrary to the terms of the permit or lease. When 
BLM authorizes the use of supplemental feed it includes all necessary 
restrictions, including any requirements for avoiding the introduction 
or spread of noxious weeds, and directions for placement to ensure that 
its use does not contribute to resource degradation. We have not

[[Page 39473]]

amended the regulations in response to this comment.
    Some comments suggested that BLM should include in section 4130.3-
2(f) a requirement that the Bureau must develop a ``findings'' document 
containing the relevant facts, based on documented resource data, 
supporting decisions BLM issues to change current terms and conditions 
of grazing permits or leases for any of the reasons stated in paragraph 
(f). They stated that such a ``findings'' document also should accompany 
any grazing decision placed in full force and effect by the Bureau.
    Section 4130.3-2(f) provides that BLM may temporarily delay, 
discontinue, or modify grazing use as scheduled by the permit or lease 
to allow for plant recovery, improvement of riparian areas, protection 
of rangeland resources or values, or to prevent compaction of wet 
soils, such as when delay of spring turnout is required because of 
weather conditions or lack of plant growth. This provision allows for 
timely implementation of temporary changes to grazing use that are 
needed to respond to on-the-ground conditions that cannot be reliably 
predicted when the permit or lease is issued. Similarly, BLM makes 
grazing decisions effective immediately (``full force and effect'') 
only when needed to respond to temporary and unpredictable conditions 
such as lack of forage due to wildfire, drought, or insect infestation, 
or to close grazing areas to abate unauthorized grazing use.
    In most cases, the resource conditions that trigger a temporary 
change in terms and conditions should be evident to both the permittee 
or lessee and BLM. In the event that they are not and the permittee or 
lessee does not voluntarily agree to such temporary changes, BLM would 
need to issue a grazing decision to require the temporary changes. Such 
a grazing decision would include a rationale for the temporary changes 
and be subject to appeal and petition for stay.
    Because the need for changes cannot be reliably predicted and can 
arise suddenly, BLM will not adopt the suggestion that a ``findings'' 
document be required before making temporary changes or before making 
changes by grazing decision effective immediately. Such a requirement 
could result in unnecessary delay of actions that are needed to 
conserve and protect resources.
    Some comments stated that BLM should modify the regulation at 
section 4130.3-2(g) by removing the phrase ``within the allotment'' 
with respect to lands allowed for exchange of use, so that a permittee 
or lessee who owns land within another permittee's or lessee's 
allotment may be credited on his grazing fee bill for the forage that 
their lands are providing to the other permittee.
    We have not adopted this suggestion in the final rule. An exchange 
of use agreement is not the appropriate instrument to document the 
arrangement described by the comment. The arrangement described by the 
comment is where BLM acts as an intermediary between two permittees/
lessees by: (1) Collecting grazing fees from the first party for their 
grazing use of the second party's private lands that are located in the 
first party's grazing allotment; and (2) then crediting the grazing fee 
billing of the second party (for grazing use in a different allotment) 
in the amount collected from the first party. BLM suggests that a more 
appropriate approach to this situation would be: (1) The first 
permittee lease for grazing purposes land owned by the second permittee 
that is located in the first permittee's allotment; and, (2) the first 
permittee then provide BLM a copy of the lease to show evidence of 
control sufficient for BLM to enter into an exchange of use agreement 
with them. BLM recognizes that where the second permittee does not 
fence his land and state or local law provides that lands must be 
fenced before a landowner can gather stray livestock from their land, 
there is no incentive, other than good will, for the first permittee to 
lease the second permittee's land because he can graze the second 
permittee's land for free (although they cannot stock to the capacity 
of the public and private lands considered together because they cannot 
demonstrate control of the private land). Therefore, at the local 
office level, BLM may be willing to provide the intermediary billing 
services described above through the terms of a cooperative agreement 
or service contract with all involved parties.
    The purpose of an exchange of use agreement is to allow a permittee 
who owns or controls land that is intermingled with and unfenced from 
public land within his allotment to stock to the capacity of the public 
and private lands considered together and be charged grazing fees only 
for the forage that occurs on the public lands. Removing the phrase 
``within the allotment'' from this paragraph would allow permittees to 
offer lands in exchange of use that are not within the allotment for 
which they have a permit. Although removing this phrase could 
facilitate BLM performing the intermediary billing service described 
above in some circumstances, generally allowing lands outside 
allotments to be offered in exchange of use could create an expectation 
that the permittee would be allowed to stock his permitted allotment to 
the extent of the forage produced on the land outside his allotment 
offered in exchange of use, plus the forage that occurs on lands within 
his allotment. This expectation could not be met by BLM because the 
resulting stocking level would not comply with the requirement at 
section 4130.3-1(a) that livestock grazing use authorized by a grazing 
permit or lease not exceed the livestock carrying capacity of the allotment.
    One comment suggested that BLM should require other users of the 
public lands to get permission to be on public land from BLM and BLM 
should inform the permittee when other users and/or BLM staff will be 
out on the permittee's allotment.
    Determining whether and under what circumstances users other than 
livestock permittees need approval to use public lands is outside the 
scope of this rulemaking. Whenever feasible, BLM will inform the 
livestock operators in advance about BLM field operations that affect 
grazing management of allotments where they have permits or leases in 
the spirit of consultation, cooperation, and coordination. A regulation 
requiring advance notification, however, would be impractical to 
implement and detract from efficient management of the public lands. We 
have not adopted this suggestion in the final rule.
Section 4130.3-3 Modification of Permits or Leases
    In the proposed rule, we amended this section in order to clarify 
that BLM may modify terms and conditions of a permit or lease if we 
determine that either the active use or related management practice is 
no longer meeting the management objectives specified in the land use 
plan, an allotment management plan, an applicable activity plan, or any 
applicable decision issued under section 4160.3. We may also modify 
permit or lease terms and conditions that do not conform to the 
provisions of subpart 4180.
    Also, we removed the regulatory requirement that we consult with 
the interested public on any decisions to modify terms and conditions 
on a permit or lease. The interested public retains, to the extent 
practical, the opportunity to review and provide input on reports 
supporting BLM's decisions to increase or decrease grazing use. The 
interested public, permittees and lessees, and the state should all 
have opportunity to review and submit input to BAs and BEs when they 
are used to

[[Page 39474]]

supplement grazing management evaluations. However, since they are 
among the body of documents that qualify as ``reports,'' there is no 
need to highlight them in the regulations. Therefore, the specific 
reference to BAs or BEs at section 4130.3-3(b) has been removed from 
the final rule.
    Some comments suggested that BLM not use the need to conform to the 
provisions of subpart 4180 as justification for modifying terms and 
conditions of a permit or lease. The comment stated that standards 
developed under subpart 4180 are subjective, and there are no 
requirements to collect data to support a determination of achievement 
or failure to meet those standards.
    We have not adopted this comment in the final rule. BLM developed 
rangeland health standards and guidelines for livestock grazing 
administration in consultation with RACs in most states and regions. 
The fundamentals of rangeland health and standards and guidelines 
recognize rangeland ecological complexity and multiple values, and are 
among the many tools BLM uses to ensure sustainable multiple use of 
public lands. Evaluation of rangeland conditions is carried out using 
all available monitoring, inventory, and assessment data. Permit 
modifications are based on range health assessments and evaluations, 
completed by an interdisciplinary team, using all available monitoring 
data and all available resource information. This final rule further 
emphasizes the importance of using monitoring data by adding, at 
section 4180.2(c), a requirement for its use to identify what the 
significant contributing factors are, once a standards assessment has 
indicated that the rangeland is failing to meet standards or that 
management practices do not conform to the guidelines. The final rule 
retains the provision on conformance to subpart 4180.
    Another comment suggested adding requirements to collect monitoring 
data that shows that current grazing use or management is the cause of 
not meeting management objectives. A similar comment suggested adding 
requirements to document facts and findings, supported by resource 
data, as a justification for changing terms or conditions. Finally, 
another comment stated that BLM should make it clear in subparts 4110 
and 4130 that any changes in grazing preference and/or changes in other 
grazing permit terms and conditions must be supported by monitoring 
done by BLM-approved Manual procedures.
    Permit and lease modifications are based on land health assessments 
and evaluations, completed by an interdisciplinary team, using all 
available monitoring data and all available resource information. BLM 
documents facts and findings during the evaluation process by preparing 
an evaluation report and NEPA documents that reference all data and 
information used as a basis for recommending changes in terms and 
conditions. This final rule further emphasizes the importance of using 
monitoring data by adding a requirement at subpart 4180.2(c) that it be 
used to identify significant contributing factors for failure to meet 
standards, once a standards assessment has indicated that the rangeland 
is in fact failing to meet the standards or that management practices 
do not conform to the guidelines. BLM needs flexibility to use site-
specific methods in addition to those monitoring methods set forth in 
Manual guidance. This flexibility will allow BLM to use techniques that 
meet local needs and that we may develop in cooperation with other 
agencies and partners.
    Another comment suggested that we consider adding a provision at 
section 4130.3-2 stating that ``this regulation does not obviate the 
need to obtain other federal, state or local authorizations required by 
law.'' The comment pointed out that the construction of range 
improvements associated with grazing activities, such as water improvements 
and storage structures, is often governed by other laws or regulations.
    Section 4120.3 governs the installation, construction, and 
maintenance of range improvements. Permittees or lessees must enter 
into a cooperative range improvement agreement with BLM before building 
water improvements or storage structures. Through the cooperative 
agreement, BLM retains control over standards, design, construction and 
maintenance criteria. The provision suggested by the comment is 
unnecessary because BLM has a responsibility to ensure compliance with 
applicable law. Nothing in the regulations prevents BLM from adding 
such a term where it is warranted. BLM still must comply with NEPA, the 
Clean Water Act, and state water rights laws. Since BLM maintains 
control over range improvement planning, implementation and 
maintenance, existing regulations and policies ensure compliance with 
applicable Federal, state, and local law and regulations.
    Under the final rule, consultation, cooperation, and coordination 
with the interested public is no longer required before a term or 
condition in a grazing permit or lease is modified due to active use or 
related management practices not meeting relevant plans or decisions. 
This change is intended to improve the administrative efficiency of 
grazing management operations.
    Many comments expressed opposition to any reduction in the role of 
the interested public, and many cited the modification of permits as a 
general concern. Many felt it was important to have non-grazing 
interests involved in both planning and implementation-level decisions. 
Numerous other comments supported a general reduction in mandatory 
consultation with the interested public, seeing these as activities 
that would benefit from faster and more efficient action.
    Permit and lease modifications are routine management activities. 
BLM modifies permits and leases to maintain consistency with broader 
planning decisions such as land use plans and allotment management 
plans. These planning-level decisions are made with extensive 
involvement of the interested public and public participation 
opportunities through environmental analysis under NEPA. Modifications 
may also be made as a result of monitoring studies, evaluations of 
rangeland health standards and guidelines for grazing administration or 
BAs or BEs prepared as part of the Section 7 consultation requirements 
under the ESA. In these cases, BLM provides the interested public, to 
the extent practical, an opportunity to review and provide input on 
these reports and evaluations during their preparation, in accordance 
with section 4130.3-3(b). Most modification decisions themselves 
require site specific NEPA analysis leading to public notice and 
potential public participation. Additionally, the interested public 
will be specially notified of a proposed decision and can protest if so 
desired.
    In BLM's view, informal consultations and the ability to review the 
NEPA document and protest a proposed decision provide adequate 
mechanisms for identifying legitimate public concerns over permit 
modifications. The final rule maintains the opportunity, to the extent 
practicable, for the interested public to review and provide input on 
reports that evaluate monitoring or other data. BLM appreciates that 
the interested public can potentially provide important insights on 
reports that will be used to shape implementation decisions. Because 
this is information that postdates planning decisions, yet will 
influence future daily

[[Page 39475]]

implementation decisions, it is appropriate for the interested public 
to participate in reviewing this data.
    The proposed rule specifically referred to the preparation of BAs 
or BEs prepared pursuant to the ESA as being open for review. Several 
comments requested that these reports be removed from the rule because 
of their technical nature.
    A change has been made in the final rule to remove the specific 
listing of these example reports. While the range of reports subject to 
this review procedure would include, in most circumstances, BAs or BEs, 
it is not BLM's intention nor is it appropriate to create an exhaustive 
list of reports subject to review in the regulations. Listing these 
particular reports could have unduly narrowed the perceived range of 
what should be made available for review and input.
    One comment stated that BLM should clarify that it maintains sole 
responsibility and authority to ensure the accuracy of the biological 
assessment and the conclusions therein, and to ensure that listed 
species are not likely to be jeopardized, regardless of economic 
considerations.
    There is adequate direction provided in the ESA and in the FWS and 
National Marine Fisheries Service regulations on these requirements. 
BLM will continue to use the procedures specified in BLM Manual section 
6840 to carry out our responsibilities under the ESA and coordinate 
with other agencies
Section 4130.4 Authorization of Temporary Changes in Grazing Use Within 
the Terms and Conditions of Permits and Leases, Including Temporary Nonuse
    In the proposed rule, we revised section 4130.4 to provide 
additional detail on what is meant by the phrase ``within the terms and 
conditions of the permit or lease.'' When we refer to ``temporary 
changes within the terms and conditions of the permit or lease,'' we 
mean changes to the number of livestock and period of use that BLM may 
grant in any one grazing year. We authorize such changes in response to 
annual variations in growing conditions that arise from normal year-to-
year fluctuations in temperature and the timing and amounts of 
precipitation and to meet locally established range readiness criteria. 
Most permits or leases include a period of use described by specific 
dates. These dates do not always account for the natural fluctuations 
that can lead to forage availability outside the listed dates. Existing 
regulations allow for temporary changes, but this authority has, at 
times, been applied inconsistently within BLM. The new definition 
clarifies the amount of flexibility BLM authorized officers will have 
when considering temporary changes. Under the revised section, 
``temporary changes in grazing use within the terms and conditions of a 
permit or lease'' includes temporary changes in livestock number, 
period of use, or both, that would--
    (1) Result in temporary nonuse; or
    (2) Result in forage removal that does not exceed the amount of 
active use specified in the permit or lease, and occurs either not 
earlier than 14 days before the begin date specified on the permit or 
lease, and not later than 14 days after the end date specified on the 
permit or lease, or that conforms to flexibility limits specified in an 
allotment management plan under section 4120.2(a)(3).
    The provision also applies to temporary changes that result in both 
temporary nonuse and forage removal 14 days or less before the begin 
date and/or after the end date, as just described in (2), above.
    In the final rule, we removed language listing reasons for allowing 
temporary changes in grazing use within the terms and conditions of the 
grazing authorization. First, comments objected to the reference to 
locally established range readiness criteria, and second, the list may 
be too restrictive. We also removed paragraph (a)(2), because it is 
unnecessary to require consultation, cooperation, and coordination with 
the applicant.
    We have amended paragraph (d)(2) of this section in the final rule 
by changing the word ``will'' that appeared in the proposed rule to 
``may'' in order to avoid an interpretation of this provision that BLM 
has no discretion to deny temporary nonuse. We also added a reference 
to ``temporary nonuse'' in the section heading as a convenience to 
readers, and reorganized the section to increase clarity.
    In the proposed rule we moved provisions addressing approval of 
``temporary nonuse'' from section 4130.2 to section 4130.4 and amended 
them to give BLM discretion to approve applications on a year-to-year 
basis for temporary nonuse of all or part of the grazing use authorized 
by a permit or lease when the nonuse is warranted by rangeland 
conditions or the personal or business needs of the permittee or 
lessee. When rangeland conditions are such that less grazing use would 
be appropriate, BLM encourages operators, if they have not done so 
already, to apply for nonuse for ``conservation and protection of 
rangeland resources.'' Events such as drought, fire, or less than 
average forage growth typically result in ``rangeland conditions'' that 
will prompt the need for temporary nonuse of all or part of the grazing 
use allowed by the permit or lease.
    Paragraph (f) of this section (Sec.  4130.2(h) in the existing 
regulations, as revised for clarity) continues BLM's current discretion 
to issue a nonrenewable authorization to other qualified applicants to 
use the forage that became temporarily available as a result of nonuse 
approved for business or personal reasons. On the other hand, when BLM 
approves nonuse because we agree that rangeland conditions would 
benefit from temporary nonuse, we do not authorize another operator to 
use it.
    We also moved current paragraph (a) to the end of section 4130.4 
and redesignated it as paragraph (g). In newly designated paragraph 
(g), we made editorial changes.
    The principal change that we made in the proposed rule with regard 
to temporary nonuse was to remove the current three-consecutive-year 
limit on temporary nonuse. We proposed that BLM should have the same 
discretion to approve temporary nonuse as existed before the 1995 rule 
changes, to provide us with management flexibility needed to respond to 
the common occurrence of site-specific fluctuations in available forage 
levels that may occur for a variety of reasons as explained above.
    First we will consider the comments that discussed temporary 
changes in grazing use within the terms and conditions of the permit or 
lease, and then the comments that discussed the changes that we 
proposed with regard to temporary nonuse.
    One comment stated that grazing permits should contain soil, water, 
riparian vegetation, and wildlife objectives, in order to help 
determine whether it is appropriate to authorize early opening or late 
closing of grazing. The comment continued that most detrimental changes 
in condition of soil, water, riparian vegetation, and wildlife result 
from ill-planned season of livestock use, duration of use, or amount of 
utilization. It concluded that terms and condition of the permit need 
to contain objectives that can address these activities, and that BLM 
should only change grazing use within the terms and conditions of 
permit or lease if they have monitoring and assessment data to support 
the change in use, and the change does not result in removing more 
forage than the ``active use'' specified by the permit or lease.
    Objectives for soil, water, riparian, wildlife, and other resources 
are usually developed through the planning process and included in land 
use plans,

[[Page 39476]]

allotment management plans, or activity plans, becoming more site 
specific at each level of planning. A grazing permit must conform to 
the objectives of land use plans. Therefore terms and conditions are 
designed to achieve the objectives established in the relevant land use 
plans and it is not necessary to restate objectives in the permit. In 
addition to objectives established in overarching plans, standards for 
rangeland health provided for in section 4180.2 establish levels of 
physical and biological condition or degree of function and minimum 
resource conditions that must be achieved or maintained. Terms and 
conditions of permits must provide for achievement of the rangeland 
health standards. The proposed rule at section 4130.4(b)(1) already 
limits the temporary use provided for in this section to the amount of 
active use specified in the permit or lease. Approval of applications 
for temporary changes will be dependent on range conditions as observed 
by the authorized officer, following the criteria in internal guidance 
and in the standards and guidelines under subpart 4180.
    Another comment suggested that the rule should provide that grazing 
use that removes more forage than active use specified in the permit or 
lease be justified by monitoring and assessment data.
    The regulations in this rule already address this situation. If BLM 
were to authorize use greater than the active use specified in the 
permit or lease, we would do so under section 4110.3-1, which addresses 
increasing active use, and base it on monitoring or documented field 
observations.
    Several comments, including one from a state wildlife agency, 
stated that the rule should provide for consultation with state 
wildlife departments before BLM authorizes changes within the terms and 
conditions of the permit. It went on to say that, just as the criteria 
to be used in justifying temporary changes in grazing use within the 
terms and conditions of a permit or lease include annual fluctuations 
in timing and production of forage and rangeland readiness criteria, so 
are the needs of wildlife species dependant upon these fluctuations. 
One comment agreed with BLM's approach on this issue, but stated that 
we should consider wildlife-critical periods when deciding whether to 
authorize the temporary changes in grazing terms within the terms of 
the permit or lease.
    Consideration of wildlife habitat needs occurs during all stages of 
planning the multiple use of public lands. During each stage of this 
planning process--land use planning, allotment management planning and 
the formulation of individual permits and leases--the state is invited 
to participate in developing objectives and strategies to protect 
wildlife habitat. Since the temporary changes are by definition within 
the terms and conditions of permits or leases, we believe the state has 
had ample opportunity to communicate the wildlife-critical periods and 
specific habitat needs that BLM must consider while processing an 
application for temporary changes in grazing use.
    Other comments urged BLM to reconsider applying range readiness 
criteria, and one asked for a definition of range readiness. They 
opposed the idea of using ``locally established range readiness 
criteria'' in this context, stating that the concept of ``range 
readiness'' is no longer supported by the range science community. 
Another comment stated that BLM should amend Sec.  4130.4(a)(1)(ii) to 
provide that the ``locally established range readiness criteria'' must 
have been established in applicable land use plans, activity plans, or 
decisions. The comment strongly supported recognizing that range 
readiness for turn out may vary from year to year, and stated that 
providing a 14-day window is prudent. Several comments stated that the 
authorization of temporary changes of use should not be based on active 
use or preference, but on whether forage is actually available.
    We have amended this section in the final rule by removing the 
references to the reasons for authorizing temporary changes in grazing 
use. Thus, the final rule does not contain any reference to ``range 
readiness criteria.'' We made these deletions for two reasons. First, 
we did not want to limit our discretion as to why we may authorize 
temporary changes in grazing use, and second, we recognize that the 
method for determining ``range readiness'' is controversial and 
technical in nature. It is therefore more appropriately addressed in 
manual, handbook, or other technical guidance. This guidance will 
include the criteria BLM will follow in authorizing such changes, and 
appropriate consultation requirements. BLM considers the availability 
of forage as well as many other physical and biological factors when 
processing an application for temporary changes in grazing use.
    One comment urged BLM to allow changes within the terms of the 
permit or lease only if BLM determines it appropriate before the 
grazing season, to avoid the possibility of legitimizing trespass by 
changing grazing use periods or numbers part way through the grazing year.
    BLM will not use the provision to approve changes in use after the 
fact, agreeing that it is inappropriate to legitimize grazing trespass. 
It is also impossible to determine before the grazing season starts 
what conditions will exist in ensuing months. We have amended paragraph 
(e) of this section in the final rule to make it clear that 
applications for changes within the terms and conditions must be filed 
in writing on or before the date the change in grazing use would begin. 
We have also amended paragraph (b) by adding language recognizing that 
the allotment management plan may allow grazing beyond the 14-day 
limit. Nevertheless, grazing would still be limited to the total active 
use allowed in the permit or lease.
    One comment urged BLM to consider shortening the limit for grazing 
within the terms and conditions of the permit or lease to 7 days 
instead of 14 days. The comment stated that some permittees will 
request a 14-day opening as soon as forage is bite high. It went on to 
say that 7 days is plenty to allow for varying weather conditions. The 
comment also said that the same limit should apply at the end of the 
grazing season, and that if there is more than 7 days of forage 
remaining, it should be banked for the next year. Another comment asked 
BLM to explain how the possible 28-day combined extension of the 
grazing period will not result in overgrazing.
    We have determined that 14 days before the begin date in the permit 
or lease provides an appropriate degree of flexibility in determining 
when to allow turn out, as does 14 days after the end date to require 
round up. As for the suggestion that excess forage measured in days 
should be saved for the next year, it is unnecessary to state this in 
the regulations. The provision already limits its application to the 
amount of active use called for in the permit or lease. Forage in 
excess of this amount will not be allocated under this provision, so 
this provision will not lead to overgrazing. The regulations allow 
increases in active use under section 4110.3-1 in appropriate 
circumstances.
    Many comments raised concerns about the temporary nonuse provisions 
in section 4130.4(c) through (e).
    Several comments expressed the concern that, if we adopt the rule 
as proposed, BLM would be unable to deny nonuse for conservation 
purposes. The comments pointed out the possibility that since the rules 
do not limit the number of years that a grazing

[[Page 39477]]

operator could potentially be approved for nonuse of his grazing permit 
or lease, conservation organizations could acquire grazing permits and 
perpetually receive BLM approval not to use them for reasons of natural 
resource conservation, enhancement, or protection. Another comment 
supporting the proposed rule expressed concern that BLM's discretion to 
grant nonuse for more than 3 years allows a de facto ``conservation 
use'' permit in violation of the TGA, FLPMA, and the decision in Public 
Lands Council v. Babbitt, supra. Also, the proposed rule stated that 
BLM ``will'' authorize nonuse to provide for natural resource 
conservation, enhancement or protection or for the personal or business 
needs of the permittee.
    In the final rule, BLM has changed the term ``will'' to ``may'' to 
make clear that BLM retains the discretion to disapprove nonuse if BLM, 
based on the facts applicable to the circumstances, does not agree that 
nonuse is warranted.
    The final rule also does not change provisions that authorize BLM 
to cancel permits and leases if they are not used for the purpose 
intended--namely, to graze livestock--and to award them to other 
applicants in accordance with the decisions, goals, and objectives of 
the governing land use plan. BLM believes it necessary to retain 
discretion to approve or disapprove nonuse based on the facts and 
circumstances at hand, so that it may adapt its management to the needs 
of the resources as well as the resource user. The regulations adopted 
today provide that unless BLM approves nonuse in advance, it is not 
approved. BLM may deny nonuse if we find that it is not needed either 
for natural resource conservation, enhancement or protection, or for 
personal or business needs of the permittee. If BLM denies a 
permittee's application for nonuse, the permittee would be obligated to 
graze in accordance with their permit or lease. If the permittee failed 
to make use as authorized by their permit or lease for two consecutive 
fee years, then BLM could cancel the unused preference under section 
4140.1(a)(2) and allocate it to other applicants under sections 4110.3-
1(b) and 4130.1-2.
    If BLM approves nonuse for personal or business reasons of the 
permittee or lessee, we may authorize other qualified applicants to 
graze the forage that is temporarily made available due to the nonuse 
by the preference permittee under section 4130.4(e). If BLM approves 
nonuse for reasons of resource conservation, enhancement, or 
protection, and should a qualified applicant believe that BLM's 
approval of nonuse for any of these reasons is not justified, that 
applicant could apply to use the forage that he believes to be made 
available as a result of BLM's approval of nonuse. Because the 
regulation at section 4130.4(e) would not allow BLM to approve an 
application for forage made available as a result of temporary nonuse 
approved for reasons of resource conservation, enhancement, or 
protection, BLM would then necessarily deny such an application for use 
by grazing decision. This grazing decision would be subject to protest 
and appeal, thereby providing the applicant an opportunity to 
demonstrate to an administrative law judge or board why he believes 
BLM's decision to approve the nonuse application was in error, and to 
have the court compel BLM to either require that the forage be used by 
the preference permittee or to make the forage available for use by 
other applicants.
    Some comments stated that the Supreme Court found that unlimited 
nonuse was not consistent with the TGA.
    The final rule does not authorize BLM to grant ``unlimited'' 
nonuse. The final rule restores to BLM flexibility to approve permittee 
or lessee applications for nonuse as long as BLM determines annually 
that the nonuse is warranted by resource needs or by the personal or 
business needs of the operator.
    One comment questioned why temporary nonuse must be subject to 
annual application, stating that in at least some cases it should be 
easy to predict that the benefits from nonuse would take several or 
even many years to accumulate. The comment suggested that an analysis 
of historic employment of temporary nonuse might shed light on reasons 
ranchers applied for temporary nonuse: BLM proposals to reduce AUMs; 
business reasons of the permittee or lessee; or cooperative agreements 
to allow range or riparian recovery.
    Annual reconsideration of temporary nonuse allows BLM to determine 
whether it is still necessary. Of course, in some cases the 
determination will be easy to make. Historical analysis of temporary 
nonuse is not necessary. Of the three reasons for nonuse suggested in 
the comment, two are explicitly provided for in the regulations at 
section 4130.4(d)(2)(i) and (ii). As for the other reason suggested for 
temporary nonuse, that BLM is proposing to reduce AUMs, temporary 
nonuse may be a preferable, less drastic, alternative, which will give 
the range an opportunity to recover to forage levels that will support 
the permitted AUMs before BLM cancels the AUMs.
    One comment urged BLM to ensure that the grazing regulations 
provide for maximum flexibility for nonuse, or reduced use, including 
allowing nonuse for 3 years for reasons other than resource management. 
Upon 3 years of nonuse, then, according to the comment, BLM should 
consult with the preference holder to determine how to make the nonuse 
AUMs temporarily available to other applicants engaged in the livestock 
business, or to reallocate them permanently in accordance with the 
grazing regulations. The comment concluded that BLM should limit nonuse 
for resource protection reasons to 5 years to protect the range from 
rangeland health concerns that some contend start to accrue after 5 
years without livestock grazing.
    The final regulations provide sufficient flexibility for approving 
nonuse for reasons other than resource management. BLM should not wait 
for 3 years before authorizing other applicants to graze AUMs made 
available due to a preference permittee's nonuse for personal or 
business reasons, as there may be times where the use can appropriately 
be made immediately. However, we disagree that there should be an 
arbitrary limit on nonuse for reasons of resource conservation, 
enhancement, or protection. There may be times when nonuse based on 
these needs is justified for longer than 5 years, which BLM will 
determine based on monitoring and standards assessment.
    One comment supported the proposed policy that removes the current 
3 consecutive year limit on temporary nonuse of a grazing permit, 
because it gives BLM and the permittee more flexibility in resting 
allotments to protect and restore natural resources.
    One comment suggested the rule should include a description of the 
types of information and documentation that a permittee must submit to 
``justify'' nonuse. The comment expressed concern that if the level of 
detail required is too great, it may become too burdensome on the 
permittee at the expense of the wildlife or habitat resource. The 
comment also stated that the requirement that nonuse be re-authorized 
annually could prove burdensome to the permittee. Finally, there was 
concern that these requirements may ultimately conflict with Sections 
7(a)(1) and 7(a)(2) of the ESA and conservation agreements and 
strategies for sensitive species.
    BLM does not believe that the application process will be 
burdensome. BLM's long-standing procedure is annually to provide its 
permittees and lessees a grazing application reflecting the use 
authorized by their permit or

[[Page 39478]]

lease, with an invitation to amend it within certain parameters if it 
does not meet their needs for that year. The new nonuse provision will 
not create any additional burden. Further, BLM does not believe that 
expanding its flexibility to allow longer periods of temporary nonuse 
will ultimately conflict with Sections 7(a)(1) and 7(a)(2) of the ESA 
or conservation agreements and strategies for sensitive species. In 
fact, just the opposite is expected with the use of this flexible 
resource conservation tool.
    One comment urged that BLM should not propose reductions and 
eliminations in resting or nonuse because this action, which is only 
beneficial to the permittee or lessee, implies that BLM is only 
concerned about short-term production of livestock and not the long 
term benefit of stewardship.
    BLM does not believe that granting nonuse when it is beneficial to 
a permittee or lessee implies that BLM is only interested in short term 
livestock production. Long-term stewardship of public lands is inherent 
in the stated missions and goals of the agency in Section 102(a) of 
FLPMA. There are also many sections (such as section 4130.3-3(b), 
subpart 4180, etc.) in the grazing regulations that provide mechanisms 
for exercising stewardship of the public lands to ensure that the lands 
are productive and available to future generations. Additionally, the 
concept is embodied in BLM's mission statement: ``sustains the health, 
diversity, and productivity of the public lands for the use and 
enjoyment of present and future generations.''
    Another comment supported the proposal to allow annual re-
authorization of nonuse, based on the local manager's judgment, to 
promote flexibility in management of BLM grazing permits. The comment 
noted, however, that this flexibility would also provide a permittee 
the opportunity to retain monopoly control of an allotment and its 
resources at low or no cost. The comment suggested a limit on nonuse of 
3 to 5 years. At that point, a more careful review of the situation and 
future alternatives would be conducted, and a decision could be made to 
continue the nonuse or move ahead with other options.
    It is necessary to retain discretion to approve or disapprove 
temporary nonuse based on the facts and circumstances at hand, so that 
BLM may adapt its management to the needs of the resources as well as 
the resource user. BLM may deny nonuse if we find that it is not needed 
for natural resource conservation, enhancement, or protection, or for 
the personal or business needs of the permittee. Under the final rule, 
however, temporary nonuse may be approved annually for longer than 
three years, if the reasons for nonuse remain. BLM believes it is 
important to require an annual request for temporary nonuse in order to 
re-assess the circumstances. With this annual re-assessment, 
establishing a firm limit on the number of years of nonuse is unnecessary.
    One comment suggested that the regulations should provide that when 
permit holders request nonuse or a reduction or suspension of what is 
currently permitted use, such requests would be granted.
    Section 4130.4 provides that BLM may authorize temporary nonuse for 
natural conservation reasons or for business or personal reasons of the 
permittee or lessee. If the applicant supports the request with 
appropriate reasons, BLM will normally approve the request, on a year-
to-year basis, as provided by section 4130.4(d)(1)(ii). BLM believes it 
necessary to retain discretion to approve or disapprove nonuse based on 
the facts and circumstances at hand, so that it may adapt its 
management to the needs of the resources as well as the resource user.
    One comment stated that BLM's consideration of a request for 
conservation use should consider whether that use would create a fire 
hazard.
    The final rule allows permittees and lessees to apply for temporary 
nonuse for conservation purposes. BLM's deliberation regarding an 
application for nonuse for conservation purposes will include 
consideration of whether approval would result in other effects such as 
unhealthy buildup of fuels.
Section 4130.5 Free-Use Grazing Permits
    In the proposed rule, we removed all references to conservation 
use, including in paragraph (b)(1) of this section, to conform the 
regulation to the decision of the Tenth Circuit Court of Appeals. We 
also removed the word ``authorized'' to keep the rule internally 
consistent. No comments addressed these changes.
Section 4130.6-1 Exchange-of-Use Grazing Agreements
    In the proposed rule, BLM invited comment regarding whether BLM 
should facilitate ``trade-of-use'' arrangements between operators (68 
FR 68456). As stated in the proposed rule, this type of arrangement 
allows one permittee or lessee to own or control unfenced intermingled 
private lands that are not within his allotment, but in the allotment 
of a second permittee or lessee. Some comments urged that BLM 
facilitate ``trade-of-use'' in this type of situation by collecting a 
grazing fee from the second permittee for the use of lands owned by the 
first permittee but located in the second permittee's allotment, and 
crediting the fees collected from the second permittee for these lands 
to the first permittee's grazing bills.
    Comments on the proposed rule either urged BLM to facilitate this 
arrangement or urged BLM not to facilitate this arrangement, but did 
not provide reasons other than either that it would ``contribute to 
multiple use benefits'' (from comments supporting BLM facilitation), or 
that it would not (from comments opposing BLM involvement).
    We have made no change in the final rule in response to these 
comments. BLM continues to believe that ``trade-of-use'' arrangements 
between private parties are best handled by the private parties. The 
regulation continues to provide that lands offered in exchange-of-use 
must be unfenced and intermingled with the public lands in the same 
allotment.
    Another comment urged BLM to include in this section a provision 
stating, ``BLM will include in calculation of the total allotment or 
lease livestock carrying capacity, the total number of livestock 
carrying capacity AUMs of lands offered for exchange of use as 
determined by a rangeland survey conducted by persons qualified as 
professional rangeland managers.''
    We have not adopted this comment in the final rule. The regulation 
continues to limit the level of use on public lands authorized by an 
exchange-of-use agreement on public lands to the livestock carrying 
capacity of the lands offered in exchange-of-use. Guidance regarding 
how this level is determined is best contained in grazing management 
handbooks and technical references, not in the grazing regulations.
Section 4130.6-2 Nonrenewable Grazing Permits and Leases
    In this section we removed the requirement that BLM consult with 
the interested public before issuing nonrenewable permits and leases. 
BLM issues nonrenewable permits and leases to allow grazing use of 
additional forage that is temporarily available. Here are two examples 
of when we apply this provision: when BLM has approved an application 
for nonuse for personal or business reasons under section 4130.4; and 
when we need to manage grazing use authorized on ``cheatgrass'' ranges.

[[Page 39479]]

    For purposes of clarity and ease of usage, in the final rule we 
have further amended the second sentence of paragraph (b) by adding a 
cross-reference to section 4110.3-1(a), which provides for the 
disposition of additional forage temporarily available.
    Under the final rule, consultation, cooperation, and coordination 
with the interested public is no longer required before a nonrenewable 
grazing permit or lease is issued. This change is intended to improve 
the administrative efficiency of grazing management operations and 
allow for a rapid response during the limited time periods when 
additional forage, such as cheatgrass forage, is available.
    In the final rule, we have added a new paragraph (b) giving the 
authorized officer the option of making a decision that issues a 
nonrenewable grazing permit or lease, or that affects an application 
for grazing use on annual or designated ephemeral rangelands, effective 
immediately or on a date established in the decision. This provision 
replaces and meets the need served by paragraphs (c)(2) and (3) of 
section 4160.4 in the proposed rule. Those paragraphs would have 
provided that decisions authorizing temporary nonrenewable grazing or 
grazing on ephemeral or annual rangeland are to be implemented despite 
a stay by OHA.
    We have decided to allow such grazing to proceed, pending appeal, 
for several reasons. In some cases, we have a limited time to authorize 
forage to be grazed before it loses its nutritional value. Under 
existing rules, upon an appeal and petition for stay (regardless of 
whether the stay is granted), BLM cannot authorize the use until the 
end of the regulatory time frames for addressing the stay petition (45 
days in addition to the 30-day appeal period, for a total of 75 days, 
or 2.5 months), and often by that time it is too late to utilize the 
forage because the forage has lost most of its value. In annual range 
(or converted annual range such as cheatgrass ranges), this may result 
in a buildup of wildfire fuels. BLM believes that this approach is a 
more efficient management tool. Parties may still appeal and seek a 
stay, but the decision will be immediately effective and there will be 
no protest period.
    This allows BLM to manage the utilization of annual or ephemeral 
rangelands on a real time basis (under land use plans, activity plans 
and other documents that contain multiple use objectives), and allows 
those who may wish to dispute such a decision the opportunity for review.
    Moreover, the provision does not exempt the action of issuing a 
nonrenewable permit or lease or approving or disapproving an 
application for use in annual or designated ephemeral rangelands from 
the normal consultation, NEPA review, and approval requirements.
    The phrase ``orderly administration of the rangelands'' in this 
provision requires BLM to explain in its decision the circumstances 
that justify placing such a decision in full force and effect.
    Other sections of the rules are cross-referenced accordingly (those 
being sections 4160.1(c) and 4160.3(c)).
    A comment urged BLM to reconsider the proposal to increase grazing 
on cheatgrass ranges because of the potential impact of cheatgrass on 
native grasses and ecosystem functions.
    Grazing of cheatgrass ranges was given as an example in the 
preamble of the proposed rule when BLM would not be obliged to consult 
with the interested public. BLM would need to implement cheatgrass 
range grazing promptly at specific times and under specific conditions. 
BLM is not proposing permanent increases in grazing on cheatgrass ranges.
    A few comments expressed concern that public participation under 
NEPA would not be sufficient, and noted the possibility that a NEPA 
categorical exclusion could be implemented. One comment requested that 
the rule be modified to exclude any possibility of a categorical 
exclusion. Several comments supported the change as proposed.
    At the time the October 2004 FEIS was published (June 2005), BLM 
was not proposing a categorical exclusion (CX) for issuing nonrenewable 
permits, and responded accordingly. On January 25, 2006 (71 FR 4159), 
BLM proposed a CX for issuing nonrenewable permits, limited to those 
allotments that have been assessed and evaluated and the authorized 
officer determines and documents that the allotment meets land health 
standards or where existing livestock grazing is not a factor in not 
achieving land health standards. The number of permit or lease 
decisions that could make use of the CX would be further limited by the 
12 extraordinary circumstances listed in Appendix 2 of Departmental 
Manual 516 DM 2, and BLM must document that the grazing use authorized 
by the nonrenewable permit would not change the status of the land 
health standards. This CX proposal (which is not a part of this 
rulemaking), if adopted, would lead to a change in the result of the 
rule, changing somewhat the ability of interested publics to 
participate in the consideration of issuing nonrenewable permits. 
However, if the CX were to be adopted, the interested public would 
still be able to participate in the process of developing land use 
plans and activity plans, where resource objectives, allocation of 
resource use (including allocation of excess forage through 
nonrenewable permits), and parameters for resource management 
(including the dates of use that could be allowed under a nonrenewable 
permit) are established; in developing reports that lead to a 
determination regarding status of land health; and at the decision 
stage under subpart 4160.
    Comments stated that BLM should retain the authority to authorize 
livestock grazing by issuing nonrenewable permits or leases to help 
maintain the health of rangelands in situations where significant 
authorized non-use by livestock exceeds a period of time appropriate to 
the respective western ecosystem.
    BLM retains the authority to authorize livestock grazing on an 
allotment even if the preference permittee is granted nonuse of his 
permit to graze that allotment for personal or business reasons. 
Although the final rule no longer restricts nonuse of a grazing permit 
or lease to 3 consecutive years, section 4130.6-2(d) allows BLM to 
issue a temporary and nonrenewable grazing permit or lease to a 
qualified applicant when forage is temporarily available, the use is 
consistent with multiple use objectives, and it does not interfere with 
existing livestock operations. Under that provision and section 
4130.4(e), when an allotment has livestock forage available that is not 
being used by a preference permittee whom BLM has approved for 
temporary nonuse for business or personal reasons, BLM may grant other 
qualified applicants a nonrenewable permit or lease to graze it. 
Section 4120.3-3(c) requires that the preference permittee or lessee 
cooperate with the temporary use of forage by the permittee or lessee 
with a temporary, nonrenewable authorization from BLM. In contrast, if 
BLM approved an application by the preference permittee for nonuse for 
reasons of resource conservation, enhancement, or protection under 
section 4130.4(d)(2)(i), BLM would deny an application for a 
nonrenewable permit under section 4130.4(e) and subpart 4160. In this 
circumstance, if the applicant for a temporary, nonrenewable permit or 
lease disagreed with BLM's determination that the nonuse was warranted 
for reasons of resource conservation, enhancement, or protection, he 
would have the option to protest and appeal the grazing decision that 
denies his application, and BLM would need to defend the determination

[[Page 39480]]

that the nonuse was warranted for the reasons specified.
    One comment stated that BLM should address the effects of the 
grazing use that would be authorized by a nonrenewable permit on seed 
replenishment by annual forbs, root reserve replenishment by perennial 
grasses and forbs, and the potential for damage to soil crust.
    We believe that it is unnecessary to address these concerns in the 
regulations, since BLM undertakes appropriate environmental review 
before issuing nonrenewable permits. Any impacts, such as those 
identified in the comment, would be addressed as a result of that 
environmental review.
Section 4130.8-1 Payment of Fees
    We proposed editorial changes to this section to make it easier to 
read, and to correct a cross-reference in the existing regulations in 
paragraph (f) (paragraph (h) in the proposed rule) to subpart 4160. In 
the final rule we further amended paragraph (h) of section 4130.8-1 to 
make it clear that failure to make payment within 30 days is a 
violation of a prohibited act in section 4140.1 and may result in 
enforcement action. As a practical matter, if a payment is late by only 
a few days, there will not be time for BLM to issue an enforcement 
decision. However, BLM will consider such late payments in determining 
whether a permittee or lessee has a satisfactory record of performance.
    We received numerous comments on grazing fees. Many comments 
favored increasing BLM's grazing fees to help fund monitoring 
activities and range improvements and to offset the costs of managing 
public rangelands. The reasons cited for raising fees included the 
following: The current system skews the market, below-market fees 
promote overgrazing: It is inequitable to increase fees for recreation 
and not for grazing; and it is appropriate to reduce taxpayer burden. 
Comments stated that BLM should no longer subsidize public land 
ranching. Several comments recommended that BLM increase fees to fair 
market value or to private land lease rates but offer ranchers the 
financial incentives of lowered fees in return for conservation 
easements or for management that improves riparian areas, land health, 
and maintenance of wildlife habitat and corridors. Many comments stated 
that BLM should allow competitive bidding for allotments, and listed a 
number of reasons, including economic efficiency, promotion of multiple 
use and rangeland health, reduction of taxpayer burden, and emulation 
of state and eastern national forest grazing fees.
    The grazing program has many purposes. Congress, in relevant 
statute, has directed that a reasonable fee be charged for grazing use. 
There are many requirements that we have under the law, two of which 
are to protect the health of the land and to manage the public lands on 
a multiple use basis, which includes livestock grazing. The 1995 
regulations and the changes contained in this rule combine to protect 
the health of the land while allowing appropriate public land grazing. 
The amount of appropriated funds that go toward the grazing program as 
opposed to that which is returned in various fees and charges does not 
amount to a subsidy. Additionally, there are benefits to the general 
public in open space preserved as private ranch land attached to 
Federal allotments that might not exist but for the grazing program. 
Benefits also include the production of beef as well as the preservation 
of Western heritage that is important to the American identity.
    As indicated in the Advanced Notice of Proposed Rulemaking (68 FR 
9964, March 3, 2003), as well as the proposed rule (68 FR 68452, 
December 8, 2003), we were not intending to address grazing fee issues 
in this rulemaking. We specifically stated that increasing grazing fees 
and restructuring grazing based on market demand were outside the scope 
of this rulemaking. We have not analyzed any of the grazing fee related 
options presented in comments, have not addressed grazing fees in the 
proposed or final rule, and have not adopted any of the 
recommendations. The existing fee structure is not altered by this rule.
    One comment stated that BLM should implement grazing fee increases 
immediately rather than implement them over 5 years because public land 
ranchers should not be protected from market forces.
    We did not propose any changes in grazing fees nor in how changes 
in grazing fees would be implemented. It appears that the individual 
making this comment misinterpreted our proposal to phase in 
implementation of changes in active use over a 5 year period when such 
changes were in excess of 10 percent. This proposal applied only to 
changes in grazing use--not changes in grazing fees.
    Many comments recommended that the sheep/goat to cattle equivalency 
be changed from ``5 sheep or 5 goats'' to ``7 sheep or 7 goats.'' They 
asserted that this proposed change would not involve a change in any 
portion of the established grazing fee formula, but would track more 
closely the amount of forage used by sheep as compared to cattle. 
Several comment letters pointed out that the 5:1 ratio used by BLM, 
originated from data collected on sheep and cattle grazing in Utah from 
1949 to 1967. The research data was collected by Dr. C. Wayne Cook, who 
used the concept of metabolic body weight to reflect the differences 
between nutritional requirements of different species. Dr. Cook's 
research was based on forage consumption and energy expenditures for 
sheep and cattle and indicated an approximate 5:1 ratio; although Dr. 
Cook concluded that ``these calculations do not represent a conversion 
factor for exchanging numbers of one kind of animal for another on the 
range.'' This early research was also based upon using a 914 lb. 
lactating cow and her calf as an AUM, and a 139 lb. ewe and her lamb 
for forage consumption estimates. The comments stated that in 1991, the 
Forage and Grazing Terminology Committee, with participation from the 
U.S. Departments of Agriculture and Interior, published new 
standardized definitions of animal units. The animal unit was defined 
as a 1,100 lb. non-lactating bovine, and estimated the weight of a 
mature ewe at 147 pounds. This new definition indicated that a 6.5:1 
ratio would be appropriate. Comments also cited a study by the USDA-ARS 
1994, Animal Unit Equivalents: An Examination of the Sheep to Cattle 
Ratio for Stocking Rangelands which supported a 7:1 ratio. This study 
was submitted with comments by several organizations. Several of the 
comments objected to the rationale given in the proposed rule for not 
addressing this issue, which was that the ratio is used for the purpose 
of calculating grazing fee billings and is therefore outside the scope 
of the rule. Comments stated that this issue is not a grazing fee issue 
but an issue of equity and improved management for the health of 
western rangelands.
    The sheep to cattle ratio is strictly a matter involving grazing 
fees and is therefore outside the scope of this rule. Confusion 
regarding the role of the sheep to cattle ratio is understandable due 
to the two distinct definitions of ``animal unit month'' in the grazing 
regulations. However, a sheep to cattle ratio is only stipulated in one 
of these definitions.
    The first definition is used in all aspects of grazing 
administration except fee calculation. See section 4100.0-5. Here, an 
AUM is defined as follows: ``Animal unit month (AUM) means the amount 
of forage necessary for the

[[Page 39481]]

sustenance of one cow or its equivalent for a period of 1 month.'' No 
sheep to cattle ratio is stipulated, no specific amount of forage is 
designated, and no equivalency to any other animals is mentioned.
    The second definition of AUM, the definition at issue here, is 
found at section 4130.8-1(c). It is as follows: ``For the purposes of 
calculating the fee, an animal unit month is defined as a month's use 
and occupancy of the range by 1 cow, bull, steer, heifer, horse, burro, 
mule, 5 sheep, or 5 goats * * *.'' This definition strictly pertains to 
the calculation of fees. The ratios of all kinds and classes of 
livestock to one another are based upon the administration of a month's 
use and occupancy, not the amount of forage necessary for their 
sustenance or any other biological measure. This method of calculating 
the fee facilitates efficiency and consistency in permit administration 
by controlling variables associated with ecological site, vegetation 
composition and/or quality, topography, pasture, allotment, grazing 
management, breed, size, weight, physiological stage, metabolic rate, etc.
    On the other hand, one comment stated that each sheep and goat 
should be counted as 1 animal unit because all animals should be 
charged, and because any other way of accounting allows too much 
grazing.
    As previously indicated, issues related to the fee structure, 
including the definition of an AUM for purpose of calculating fees, are 
not being addressed in this rule. In response to this comment, however, 
we wish to clarify that, as defined in section 4100.0-5, an AUM is 
``the amount of forage necessary for the sustenance of one cow or its 
equivalent for a period of 1 month.'' On a forage-consumption basis, 5 
sheep or goats grazing for one month is, by regulation, ``equivalent'' 
to one cow grazing for one month, and therefore comports with the 
regulation.
    One comment stated that BLM's practice of not charging a grazing 
fee for calves under 6 months is antiquated, and BLM should charge a 
fee for such calves.
    As previously stated, we are not addressing issues related to the 
fee structure, including the definition of an AUM for the purpose of 
calculating fees. In response to this comment, however, we provide the 
following information for clarification of the exclusion of calves 6 
months or younger from the calculation of fees. Typically, calves under 
6 months of age are not weaned and therefore rely on their mother's 
milk rather than forage as their primary source of sustenance. Because 
grazing fees are charged for the amount of forage consumed, an animal 
unit is considered to be a mother cow and her calf less than 6 months 
of age, unless the calf has been weaned or becomes 12 months of age 
during the authorized period of use.
    Another comment urged BLM to amend the definition of an AUM in 
section 4130.8-1 by specifying that 2 steers or heifers that are 
between 1 and 2 years old will equal one AUM for the purposes of 
calculating the grazing fee. The comment explained that a heifer will 
not calve until she is over 24 months of age. Her weight is not equal 
to that of a grown cow. A weaned steer or heifer that weighs 500 lbs. 
going on an allotment will not consume forage equal to that consumed by 
a cow. In daily intake, it will require 2 steers to equal 1 cow. The 
comment concluded that this change would allow for more flexibility in 
livestock operations.
    The definition of an AUM in section 4130.8-1(c) is strictly for 
``the purposes of calculating the fee.'' As we have stated throughout 
this rulemaking process, matters involving grazing fees are outside the 
scope of this rule. Therefore, the definition of AUM in section 4130.8-
1(c) is outside the scope of this rule.
    Numerous comments recommended that BLM recognize that the 
surcharge, which is added to grazing fee billings under section 4130.8-
1(d) of the current regulations where an operator does not own the 
livestock that are authorized by permit or lease to graze on public 
lands, is not a grazing fee and eliminate or reduce surcharges.
    We have not changed the requirement that a surcharge be added to 
grazing fee billings where an operator does not own the livestock that 
are authorized by permit or lease to graze on public lands (except that 
the paragraph is redesignated (f) in the rule). The surcharge equals 35 
percent of the difference between current Federal grazing fees and the 
prior year's private grazing land lease rates for the appropriate state 
as determined by the National Agricultural Statistics Service. Sons and 
daughters of the permittee or lessee are exempt from the surcharge 
where they meet the conditions listed at section 4130.7(f).
    The surcharge is BLM's most recent response to a longstanding 
problem, i.e., a potential for windfall profits stemming from pasturing 
agreements. In 1984, Congress enacted legislation that was intended to 
recapture such profits for the Federal treasury. The legislation 
provided that ``the dollar equivalent of value, in excess of the 
grazing fee established under law and paid to the United States 
Government, received by any permittee or lessee as compensation for 
assignment or other conveyance of a grazing permit or lease, or any 
grazing privileges or rights thereunder, and in excess of the 
installation and maintenance cost of grazing improvements provided * * 
* shall be paid to the Bureau of Land Management.'' Continuing 
Appropriations, 1985--Comprehensive Crime Control Act of 1984, Pub. L. 
98-473, 98 Stat. 1839 (1984). The penalty for noncompliance was 
mandatory cancellation of the operator s permit or lease. BLM 
promulgated regulations to implement the 1984 legislation.
    In 1986, the General Accounting Office reviewed the extent to which 
BLM permittees and lessees sublease their grazing privileges, and the 
adequacy of our regulations to control this practice. One of the 
recommendations in the resulting report (RCED-86-168BR) was to require 
that subleasing arrangements be approved for a minimum of 3 years. Such 
a lease constitutes a long-term commitment, and thus reduces the 
potential for large, short-term profits. This recommendation was 
promulgated in 1995, and continues in effect at section 4110.2-3(f).
    In 1992, the Inspector General for the Department of the Interior 
recommended that BLM adopt more stringent measures further reducing the 
potential for collecting windfall profits through pasturing agreements 
or subleasing of base property. Selected Grazing Lease Activities, 
Bureau of Land Management, Report No. 92-I-1364 (Sept. 1992). BLM 
responded by promulgating the existing surcharge provision at section 
4130.8-1(d).
    One comment stated that the surcharge is an obstacle to finding 
ways to adapt to drought conditions. This comment stated that short-
term flexibility is important so that livestock can be moved rapidly 
from an area in decline to an area where forage is available. Some 
other comments stated that the surcharge is an obstacle to adjusting 
stocking rates quickly when weather conditions change, and that the 
surcharge results in the loss of cooperation among ranchers in the 
event of a natural disaster. Finally, some comments stated that the 
elimination of surcharges would improve management flexibility, 
resulting in more effective relationships between BLM and operators, as 
well as better land management.
    Drought and other weather-related conditions are a perennial risk 
in ranching and farming. We are not persuaded that the claimed extra 
increment of risk, which may or may

[[Page 39482]]

not be added by the surcharge, is significant enough to warrant rescission.
    Many comments suggested that the surcharge discourages livestock 
owners from entering into pasturing agreements with permittees who pass 
through their costs to livestock owners. According to these comments, 
the surcharge causes permittees to lose opportunities to collect income 
that could help them weather cycles of prosperity and hardship. These 
comments also allege that the surcharge causes destabilization of 
ranching operations, loss of open spaces and western communities, and 
fragmentation of wildlife habitat.
    The concerns expressed in these comments provide no basis for BLM 
to eliminate or reduce the surcharge. Permittees who want to augment 
their income without purchasing livestock may sublease all or some or 
all of their public land grazing privileges to another operator along 
with the base property associated with those grazing privileges. While 
BLM must approve the transfer of the grazing preference and permit in 
connection with the transaction, BLM assesses no surcharge.
    Some comments suggested that the surcharge is too high for 
permittees to profit from their operations while paying the surcharge. 
Several of these comments stated that the surcharge makes public land 
ranchers less competitive than ranchers who use only private land. One 
of these comments stated that the surcharge gives non-resident 
interests a foothold on public rangelands, and increases financial 
pressures for owner-operated ranches. Finally, some of these comments 
included two illustrations intended to show financial difficulties 
resulting from the surcharge. In one illustration, a young rancher is 
forced to abandon his efforts to establish a cow-calf operation. In 
another, a rancher's widow incurs expenses in order to avoid the 
surcharge, so that she and her family can remain on their ranch.
    It is unreasonable to assign the surcharge the sole blame for an 
individual rancher's financial success or failure. Ranching tends to be 
a low-or negative-profit enterprise on both private and public lands 
(Section 3.16 of EIS). There are many factors in addition to the 
grazing fee surcharge that may affect whether a rancher will have 
financial success; the rancher's business acumen, operating loan 
interest rates, mortgage rates, livestock prices, business efficiency 
of the enterprise, and the weather are among those factors. The 
comments we received on financial impacts do not justify changing the 
surcharge regulation.
    Some comments stated that the surcharge was instituted as a 
penalty, and that the surcharge is not a grazing fee issue. To the 
contrary, it was implemented as a component of the grazing fee to 
reduce the potential for windfall profits, as identified by the General 
Accounting Office and the Office of the Inspector General. See 60 FR 9945.
    One comment stated that BLM should not exempt children of 
permittees from the surcharge in order to reduce the taxpayers' burden 
for the management of public lands. One comment stated that, assuming 
windfall profits are a large enough concern to justify the surcharge, 
BLM should waive it in cases of drought and stewardship contracts, and 
otherwise retain the requirement. Another comment stated that there is 
no windfall profit to the rancher if he brings in outside cattle. A few 
comments suggested that the surcharge should be eliminated because it 
represents an unnecessary workload for BLM. One of these comments 
stated that administering the surcharge takes valuable time away from 
on-the-ground monitoring and management activities. Another stated that 
the surcharge complicates the paperwork for both the operator and the 
land manager. Some other comments requested that we consider providing 
relief from the surcharge in cases of extreme drought, or where 
permittees' finances are strained. Some comments stated that the 
surcharge should not apply where ranchers sublease their private 
property rights in their allotments. These suggestions, like all those 
pertaining to fees, are beyond the scope of this rule. Moreover, none 
of the comments provide persuasive evidence that the original 
rationale--the potential for windfall profits--has changed. We have not 
changed the provision establishing a surcharge.
    One comment stated that BLM should waive surcharges for permittees 
who enter into stewardship contracts to make surplus forage available 
to other operators, pursuant to Section 323 of Public Law No. 108-7. 
This comment states further that a permittee who provides surplus 
forage under a stewardship contract performs a public service by 
helping to preserve ranches, with their attendant benefits to local 
economies, open spaces, and wildlife habitats.
    As we have stated, we are not addressing issues related to grazing 
fees, including surcharge issues. Furthermore, this rule is not 
promulgated to implement the legislation (16 U.S.C. 2104 note) that 
authorizes BLM to enter into stewardship contracts with private persons 
or entities, or with other public entities. That legislation is the 
subject of guidance issued by BLM and the U.S. Forest Service. 69 FR 
4107, 4174 (January 28, 2004).
    One comment stated that BLM should not allow ``after-the-grazing-
season'' payment of grazing fees.
    After-the-grazing-season billing is allowed only where BLM has made 
an allotment management plan (AMP) a part of the permit or lease and it 
provides for the privilege of after-the-grazing-season billing. AMPs 
generally contain grazing systems that prescribe limits of flexibility 
in the number of livestock and period of use, allowing operators to 
adjust grazing practices within such limits to meet the resource use 
and management goals specified in the AMP. BLM may cancel the privilege 
of after-the-grazing-season billing if the operator fails to submit the 
required report of actual grazing use on time, fails to pay the grazing 
fee billing on time, or if BLM finds that the use is erroneously 
reported. BLM believes that after-the-grazing-season billing remains a 
useful management and administrative tool that happens to be 
advantageous to operators. In addition to relieving operators of the 
requirement to pay fees in advance, it provides flexibility for 
operators to make adjustments in grazing use, within pre-set limits, 
without first having to apply for and receive approval for such 
adjustments. BLM benefits from reductions in paperwork, and both BLM 
and operators benefit from the improved working relationships that 
result from AMPs.
    One comment urged BLM to find a means of reimbursing counties for 
bearing the burden of high Federal land ownership in parts of the West. 
They suggested that BLM allocate a portion of grazing lease and permit 
fees to the counties.
    This issue is not addressed in the regulations. It is, however, 
addressed in the TGA. Under 43 U.S.C. 315i, 12\1/2\ percent of revenues 
from grazing permits and 50 percent of revenues from grazing leases are 
distributed to the states in which the lands producing the revenues are 
situated. The state legislature then decides how to spend those funds 
for the benefit of the affected counties. We note also that counties do 
receive Federal payments in lieu of property taxes under 31 U.S.C. 
6901-6907. (In 2003, those payments totaled $2,050,000.)
Section 4130.8-3 Service Charge
    The proposed rule removed the reference to conservation use in this 
section to conform to the Tenth Circuit

[[Page 39483]]

decision. We also proposed to raise service charges for issuing 
crossing permit, transferring grazing preferences, and canceling and 
replacing grazing fee billings.
    The proposed rule provided for the following increases in service 
charges:

------------------------------------------------------------------------
                                              Current        Proposed
                 Action                   service charge  service charge
------------------------------------------------------------------------
Issue crossing permit...................             $10             $75
Transfer grazing preference.............              10             145
Cancel and replace grazing fee billing..              10              50
------------------------------------------------------------------------

    Upon internal review, we have expanded the third action in the 
table to include a $50 fee for supplemental grazing fee billings, which 
BLM employs from time to time in lieu of canceling and replacing 
billings. The current regulations include a service charge for 
supplemental as well as replacement billings, so this change makes the 
final rule consistent with the current regulations except as to the amount.
    Some comments generally supported increases in the service charges, 
stating that they would allow BLM's services to be self-supporting, or 
stating that the service charges should better reflect the costs of 
grazing administration. However, some of these comments objected to the 
size of the proposed increases. One comment stated that the maximum 
service charge should be $25. Another stated that increases ranging 
from 500 percent to 1,450 percent appeared excessive. Finally, one 
comment stated that the proposed service charges were too low, and 
suggested $275 for the issuance of a crossing permit, $2,045 for the 
transfer of a grazing preference, and $250 for the cancellation and 
replacement of a grazing fee billing, in order to shift the full cost 
of those services to permittees.
    Some comments opposed service fee increases for a number of 
reasons. For example, they stated that increases would not improve 
working relations between BLM and permittees, would not address legal 
issues or administrative inefficiencies, and would be too expensive for 
operators to afford. One comment stated that BLM should reduce the 
costs of providing services rather than increasing service charges. 
Some comments objected specifically to the proposed service charge for 
issuance of a crossing permit. One comment stated that crossing permits 
merely authorize an operator access to his own allotment, and many such 
permits are consistent with historical usage and/or consent of 
neighboring operators. Some comments supported the increases for 
preference transfers and for canceling and replacing a grazing bill, 
but stated that increasing the service charge for crossing fees would 
provide operators a disincentive to report a need to cross lands 
occupied by others. These comments stated that BLM needs to know when 
operators are crossing public lands occupied by others, that there are 
safety concerns when operators trail livestock along highways, and that 
there may be concerns about insurance.
    We believe the proposed service charges will not damage working 
relationships with permittees, will contribute to the goal of covering 
a portion of administrative costs, and will not likely lessen BLM's 
goal of protecting rangelands. We do not believe that operators will 
avoid contacting BLM for a crossing permit in order to avoid the 
service charge, since this could lead to a trespass violation with 
serious consequences. We also believe that the proposed service charges 
are reasonable, as required by Section 304(a) of FLPMA, 43 U.S.C. 
1734(a). They range from $50 to $145, reflecting the processing costs 
associated with transactions that require BLM officers to engage in 
analysis and decisionmaking activities. Issuing a crossing permit 
involves analysis of terms and conditions for the grazing use that is 
incidental to a crossing. The transfer of a grazing preference requires 
findings with respect to base property, qualifications, and other 
matters. The $50 service charge for the cancellation and replacement of 
a grazing fee billing will be assessed only when a BLM officer must 
change a billing notice because a permittee or lessee files an 
application to change grazing use after BLM has issued billing notices 
for the affected grazing use. That service charge can be avoided 
altogether merely by applying to change grazing use, in those cases 
where a permittee knows of the grazing use change, before BLM issues 
the grazing fee billing for grazing use specified in the permit or 
lease. This typically occurs 30 days before the first grazing begin 
date listed on the permit or lease and 30 days after BLM has provided 
the operator a ``courtesy grazing application'' that lists grazing use 
shown on the permit or lease and invites application for changes in 
this use as may be needed or desired by the permittee or lessee. 
Additionally, BLM will not assess the service charge if, after a 
grazing fee billing is issued, BLM changes the grazing fee bill because 
we have approved an operator's grazing application not to use all or a 
portion of his preference for reasons of resource conservation, 
enhancement, or protection.
    Some comments suggested that BLM add a service charge of $50 to $75 
for filing a protest, and $100 to $150 for filing an appeal, in order 
to reimburse BLM for a portion of the initial costs of processing 
protests and appeals. One comment supported the proposed service 
charges, and suggested that BLM add a service charge of about $50 to 
accompany applications for cooperative agreements or permits for range 
improvements, stating that permittees and lessees would become more 
serious about implementing a project, having more invested in it.
    Instituting additional service charges is not necessary or 
appropriate at this time. Parties, including permittees and lessees, 
may be discouraged from filing legitimate protests or appeals of 
grazing decisions if they have to pay service charges. Further, 
aggrieved parties do not generally have to pay service charges in order 
to seek administrative remedies in other BLM programs. Applications for 
range improvements should not be subject to service charges because 
range improvements are useful to BLM in rangeland management, and 
because the public receives more palpable benefits from range 
improvements than they do from crossing permits, transfers of grazing 
preference, or the cancellation and replacement of a grazing fee billing.
    One comment stated that, instead of increasing service charges, BLM 
should increase grazing fees to fair market value because such fees 
would eliminate the need for the proposed service charges.
    As previously stated, grazing fees and related issues are not being 
addressed in this rulemaking. BLM believes the proposed changes in 
service charges respond to the increasing need for cost recovery. 
Further, it would not be fair to operators who do not need to transfer 
their preference, obtain a crossing

[[Page 39484]]

permit, or ask for a rebilling, to subsidize those who do.
    One comment urged BLM to clarify when BLM or the permittee will 
absorb charges for grazing fee billings under certain circumstances, 
for example, when permittees take temporary nonuse at the suggestion of 
BLM due to continuing drought.
    Section 4130.8-3(b) in the proposed rule provides that BLM will not 
assess a service charge when BLM initiates the action. That provision 
is adopted as proposed. Thus, if BLM suggests temporary nonuse due to 
drought, there will be no service charge.
    One comment noted the absence of specific information on the 
proposed increases in service charges.
    In response to this concern, we included in the final EIS 
additional information on current average costs associated with the 
proposed service charges. Specific information on the average cost of 
issuing billings, free use permits, exchange of use permits, trailing 
permits, temporary non-renewable permits, and the average cost of 
processing preference transfers including issuance of a permit to a 
preference transferee with all NEPA compliance, ESA consultation, and 
protests and appeals, and data management support including GIS costs 
during Fiscal Year 2003, is found in Section 2.2.15 of the final EIS
Section 4140.1 Acts Prohibited on Public Lands
    In the proposed rule, we amended the prohibition of the placement 
of supplemental feed on public lands in section 4140.1(a)(3) to make it 
clear that the prohibition applies if the placement of supplemental 
feed was without authorization or contrary to the terms and conditions 
of the permit or lease.
    We also revised section 4140.1(b)(1)(i) to state that it is a 
prohibited act to graze without a permit or lease or other grazing use 
authorization and timely payment of grazing fees. We also amended 
paragraph (b) to make it clear that the acts listed in the paragraph 
are prohibited on all BLM-administered lands, rather than that the acts 
are prohibited if they are related to rangelands.
    We amended section 4140.1(c) to limit its application to prohibited 
acts performed by a permittee or lessee on his allotment where he is 
authorized to graze under a BLM permit or lease. It pertains to 
violations of certain Federal or State laws or regulations, including 
placement of poisonous bait or hazardous devices designed for the 
destruction of wildlife; pollution of water resources; and illegal 
removal or destruction of archeological or cultural resources. It also 
pertains to the violation of specific laws and regulations including 
the Bald and Golden Eagle Protection Act, ESA, and any provision of the 
regulations concerning wild horses and burros, and to the violation of 
state livestock laws or regulations relating to branding and other 
livestock related issues. We retained the provisions that allow us to 
withhold, suspend, or cancel all or part of a grazing permit if the 
lessee or permittee is convicted of violating any of the prohibited 
acts in paragraph (c).
    Many comments supported the proposed changes to the section on 
prohibited acts. They agreed that BLM should only enforce actions 
against permittees if the violations occur while grazing on their 
permitted allotments. Many comments stated that the proposed changes 
will promote better cooperation with operators.
    Many comments opposed the changes in section 4140.1 that applied 
civil penalties only if the acts prohibited took place on the allotment 
that was subject to the permit or lease. They stated that permittees 
and lessees should be subject to civil penalties set forth in section 
4170.1-1 for performance of prohibited acts in section 4140.1 on any 
public lands, not just those public lands that are part of their 
grazing permit or lease. The comments gave a number of reasons for this 
view. They stated that this policy seems inconsistent with the stated 
intent of the rule to promote strong partnerships with good stewards of 
the land by development of simple and practicable ways to attain our 
shared purpose of sustaining open space, habitat, and watershed values; 
permittees should be held accountable and responsible for all local, 
state, and Federal resource-related laws; it weakens BLM's enforcement 
of terms of its own leases and permits; it has a negative effect on 
wildlife and their habitats and could lead to the degradation of 
resources; no analysis is provided for the validity of or necessity for 
the provision; it makes it easier for permit holders to violate 
environmental laws without fear of repercussions to their permit; it 
should require tougher enforcement, not more lenient enforcement; a 
convicted criminal should not be able to hold a grazing permit; and BLM 
should discontinue leasing to individuals who violate BLM requirements 
on their allotments.
    We intend the change in this provision to clarify whether or not 
the performance of the prohibited act must occur on the allotment for 
which the permittee or lessee has a BLM permit or lease. There is also 
some concern that some of the laws and regulations identified in this 
category of prohibited acts could result in penalties against 
permittees and lessees that are unfair because they involve a secondary 
penalty for a violation of a law or regulation whose primary 
enforcement is by another agency, with its own separate statutory 
enforcement and penalty authorities. BLM permittees and lessees are 
still accountable and responsible for violations of local, state, and 
Federal resource-related laws, since they are subject to these other 
penalties for violations of the acts listed in section 4140.1(c). These 
other penalties will still serve as a deterrent to violation of the 
prohibited acts. In addition, if the violation occurs on the allotment 
of the BLM permittee or lessee, that person is subject to the penalties 
in subpart 4170. The amendment in section 4140.1(c) has no effect on 
enforcement of violations occurring on the permittee's or lessee's 
allotment. BLM has not frequently had need to apply this provision of 
the grazing regulations in the past. A prospective permittee or lessee 
must meet the requirements stated in section 4110.1 and have a 
satisfactory record of performance under section 4130.1-1(b). The 
permittee or lessee must have substantial compliance with the terms and 
conditions applied to their grazing permit or lease and with the rules 
and regulations applicable to that permit or lease. The overall purpose 
for our amendments of the grazing regulations, including those in this 
section, is to develop strong relationships with all partners. As to 
whether or not a convicted criminal should be able to hold a permit, as 
we stated earlier, it is not Federal or BLM policy to exclude a person 
who has been convicted of a crime, paid his penalty or served his 
sentence, and been rehabilitated, from gainful employment.
    Comments stated that the rule should not prohibit failure to make 
grazing use as authorized for 2 consecutive fee years, saying only that 
the provision does not make sense. A second comment recommended that 
BLM amend the provision that prohibited failure to make substantial 
grazing use as authorized for two consecutive fee years. The comment 
cited the proposed rule provision that states ``the BLM may deny nonuse 
if the permittee cannot justify that nonuse is for resource 
stewardship,'' and recommended that the rule provide a clear exception 
if nonuse would be beneficial for listed or sensitive species and their 
habitats.
    Another comment stated that the rule should not cancel permitted 
use for failure to make substantial use as authorized or for failure to 
maintain or

[[Page 39485]]

use water base property because threats to cancel use present an 
obstacle to developing a financial plan acceptable to a lender.
    The prohibition of failing to make grazing use as authorized for 2 
consecutive fee years ensures that those who acquire grazing permits or 
leases will use them for the purposes intended, namely to graze 
livestock. Originally, the purpose of this regulation was to discourage 
acquisition of base property and grazing permits or leases by land 
speculators whose primary business was not livestock-related. It may 
now also be applicable to those who acquire ranch base property and a 
permit or lease, yet do not graze so that their permitted allotments 
are ``rested'' from grazing, ostensibly realizing conservation 
benefits. Failing to make grazing use as authorized for 2 consecutive 
fee years would occur when a permittee or lessee does not obtain BLM 
approval for nonuse of his permit or lease and does not graze livestock 
as authorized by his permit or lease for 2 years in a row.
    BLM believes the rule, and the proposed changes, are rational and 
do not constitute any threat to operators' finances. Failure to make 
substantial grazing use as authorized for 2 years, and failure to 
maintain or use water base property, are listed as prohibited acts so 
that BLM can ensure that permittees are grazing at authorized levels. 
This helps ensure accurate monitoring and data collection, and in 
general supports management of the public lands. The provision is also 
helpful in recognizing whether someone does not intend to graze 
livestock. Such recognition can be applicable to BLM's implementation 
of FLPMA, which designates livestock grazing as a ``principal or major 
use'' of public lands. 43 U.S.C. 1702(l).
    No amendment of this provision is necessary. Under the final rule, 
the authorized officer may grant nonuse for the number of years needed 
to provide for natural resource conservation, including threatened and 
endangered species. The present regulations that limit BLM's ability to 
allow for annual temporary nonuse for more than 3 years were changed. 
Under the final rule, temporary nonuse can be approved annually for 
longer than 3 years. BLM believes it is important to require an annual 
request for temporary nonuse. The annual review process allows BLM to 
assess the reasons for the request and to gauge the success of range 
recovery (if temporary nonuse was issued for resource conservation 
purposes). To do otherwise could lead to less active BLM oversight and 
management of public lands. The provision that prohibits failure to 
make substantial grazing use as authorized for 2 consecutive years 
applies to situations where a nonuse application has not been approved.
    Several comments stated that BLM should not make it a prohibited 
act to place supplemental feed on public lands without authorization, 
asserting that BLM has no personnel who are knowledgeable in livestock 
nutrition.
    The prohibition on placing supplemental feed on public lands 
without authorization is already stated in the regulations; it is not 
new in this rule. This rule does, however, add a reminder that 
information regarding the authorization of placement of supplemental 
feed on public lands may be in the terms and conditions of the permit 
or lease, and those must be adhered to as well. We disagree with the 
assertion that BLM has no personnel knowledgeable in livestock 
nutrition. One of the intents of the prohibited act on placing 
supplemental feed on public lands without authorization is to manage 
distribution of livestock for improved livestock and rangeland 
management on an allotment. The requirement for BLM authorization of 
supplemental feeding should reduce the risk of spread of noxious weeds 
and other undesirable exotic plants that could be introduced by 
supplemental feeding. Also, supplemental feeding can influence diet 
selection of the livestock among established plant species, and thus 
potentially change plant species composition on the allotment.
    Comments stated BLM should not make it a prohibited act for a 
permittee to violate Federal or state laws relating to placement of 
wildlife destruction devices, pesticide application or storage, 
alteration or destruction of stream courses, water pollution, illegal 
take, harassment or destruction of fish and wildlife, or illegal 
removal or destruction of archaeological resources. The comment stated 
that these provisions will tend to remove permittees from Federal lands.
    BLM disagrees entirely with the implication of the comments that 
unless permittees are allowed to perform these acts, they will be 
driven from public lands. The vast majority of BLM permittees and 
lessees do not perform these acts and yet are able to maintain 
commercial livestock enterprises that depend upon grazing use of public 
lands. Such acts can have a negative impact on the natural resource 
values of the allotment.
    One comment stated that BLM should not make it a prohibited act for 
a permittee to violate state brand laws because BLM does not have 
authority to enforce state brand laws.
    BLM agrees it does not have the authority to enforce state brand 
laws. A permittee or lessee who violates state brand laws would be 
subject to state penalties enforced by the state, as well as the 
Federal penalties set forth in this rule. BLM believes that violation 
of state brand laws is a significant infraction that warrants the 
penalties as stated in the grazing regulations. While states enforce 
their respective brand laws, compliance with such laws is also an 
integral part of a permittee's operations on public lands, and 
facilitates BLM's own management of public lands. Section 
4140.1(c)(1)(ii) makes it clear that being convicted under the state 
enforcement authority is a condition precedent for being found in 
violation of this prohibited act. This provision will not be removed 
from the rule.
    Several comments recommended that BLM adopt as a prohibited act the 
provision set forth in Alternative 3 of the EIS: ``Failing to comply 
with the use of certified weed-seed free forage, grain, straw or mulch 
when required by the authorized officer. Comments expressed concern 
about the adverse impacts of invasive plants on native ecosystems, and 
stated that such a provision would contribute to the ongoing efforts to 
control the alarming invasion and spreading of exotic and noxious plant 
species and would benefit wildlife and watersheds.
    BLM has decided not to pursue adding a prohibited act to section 
4140.1(b) addressing non-compliance with weed-seed free forage 
requirements on public lands at this time. We agree that promoting the 
use of weed-seed free forage products on public land will help control 
the introduction and spread of invasive and noxious plants. BLM will 
continue to develop and implement a nationwide weed-seed free forage, 
grain, and mulch policy for the public lands, working closely with 
state and local governments. We will also continue to implement our 
Partners Against Weeds strategy plan, which includes measures for 
controlling and preventing the spread and introduction of noxious and 
invasive weeds.
    One comment from a state department of agriculture urged BLM to 
remove all of section 4140.1(c) of the proposed rule. The comment 
stated that, if a permittee or lessee were convicted of a crime and 
paid the consequences under that conviction, any additional penalties 
imposed by BLM or another entity would be arbitrary, and that there are 
other ways to encourage good stewardship of the public lands.
    The intent of section 4140.1(c), as amended by this rule, is to 
help enforce provisions of prohibited acts that would

[[Page 39486]]

affect the integrity of natural resources on the allotment on which the 
permittee or lessee has a grazing permit or lease. Stewardship of the 
land includes protection of endangered species and wildlife, protection 
from pollution by hazardous materials, protection of streams and water 
quality, and protection of cultural resources. In this rule, as 
explained above, we have limited the scope of paragraph (c) to actions 
on the allotment in question.
    One comment suggested reorganizing section 4140.1(c) of the 
proposed rule so that the Bald and Golden Eagle Protection Act (BGEPA) 
and State livestock laws and regulations are not contained in the same 
numbered paragraph (3), even though they are in separately numbered 
subparagraphs (i) and (ii). The comment stated that there was no nexus 
that justified their designation together under paragraph (3).
    We have not adopted this comment in the final rule. There is no 
basis for changing the organization of section 4140.1(c)(3). There is 
no qualitative difference between numbering the references to the BGEPA 
and the state livestock laws (c)(3) and (c)(4)), respectively, and 
numbering them (c)(3)(i) and (c)(3)(ii). The nexus between them, if any 
were needed, is that the same penalty applies.
    One comment stated the proposed rule implies that a permittee 
convicted of violating the BGEPA on any lands outside his BLM grazing 
permit boundary would not risk loss of grazing privileges. The comment 
noted that the BGEPA (16 U.S.C. 668(c)) provides specifically for 
revocation of permits for violations of the BGEPA regardless of where 
the violation occurs (i.e., the violation does not have to occur within 
the grazing permit boundary), and stated that the grazing rule should 
be consistent with the BGEPA.
    The BGEPA provides authority for the Director of BLM to impose a 
penalty of immediate cancellation of leases, licenses, permits, or 
agreements authorizing livestock grazing on Federal lands for 
violations of the BGEPA. The statute, however, leaves the decision of 
whether to cancel a lease, license, permit, or agreement to BLM's 
discretion. The final rule does not alter BLM's discretionary authority 
granted under the BGEPA, but would clarify and limit BLM's enforcement 
authority under its grazing regulations by limiting its application to 
prohibited acts performed by a permittee or lessee on his allotment 
where authorized to graze under a BLM permit or lease. BLM permittees 
and lessees are still accountable and responsible for violations of the 
BGEPA, which carries civil and criminal penalties other than permit or 
lease cancellation (16 U.S.C. 668(a) and (b)). These other penalties 
will still serve as a deterrent to violation of the BGEPA on areas 
other than the allotment where the permittee or lessee is authorized to 
graze.
    Another comment expressed the broader concern that the rule does 
not provide for revocation of a permit when a prohibited act occurs 
outside of the grazing permit boundary. The comment stated that this 
contradicts the stated objectives of the proposed rule: To improve 
cooperation, promote practical mechanisms for assessing rangeland 
change, and enhance administrative efficiency. Further, the comment 
stated that the rule may result in more livestock trespass violations 
on Fish and Wildlife Service refuge lands. The comment noted that the 
current rule, which allows BLM to determine whether cancellation or 
suspension of a permit is appropriate, likely helps deter trespass 
violations.
    Finally, the commenter stated that the FEIS should report the miles 
of boundaries shared by BLM grazing allotments and refuge land and 
assess the implications of the proposed rule for the FWS mission.
    BLM believes it is appropriate that penalties applied to grazing 
permits be directly linked to the abuse of the permission being granted 
by the permits. In BLM's view, the most effective and direct deterrent 
to livestock trespassing onto refuge lands or any other Federal lands 
is for the managers of those lands to take action directly against the 
violator. This is preferable to relying upon ``secondary'' sanctions 
against the violator's BLM permit.
    BLM does not disagree that the threat of additional penalty against 
an operator's BLM permit for violation of another Federal or state 
agency's regulations has deterrence value. Violations of Federal and 
state law and regulation already carry penalties. To include an 
additional penalty in the grazing regulations unintentionally and 
unfairly treats grazing permittees inequitably. The 1995 regulations 
single out a particular use for additional penalty to which other 
violators are not subject. We do not expect that the proposed change 
will have any effect on lands adjacent to BLM-managed lands. 
Furthermore, as noted above, existing law should be sufficient to 
protect against trespass. BLM remains committed to cooperating with 
other Federal and state land managers on a case-by-case basis to 
address incidents of livestock grazing trespass.
    Finally, the final rule does not prevent BLM from penalizing a 
permittee if the permittee unlawfully trespasses on another allotment. 
Nor does the final rule prevent BLM from penalizing a permittee by 
altering his permit if he is convicted of destroying government 
property on Federal lands other than on his allotment (section 4170.1).
    One comment suggested that the regulations should provide that any 
grazing use that was canceled as a penalty is available to other applicants.
    Grazing permits and leases that are canceled due to noncompliance 
with terms and conditions of a permit may be available under section 
4130.1-1 to other qualified applicants who apply for grazing use on 
that allotment.

Subpart 4150--Unauthorized Grazing Use

Section 4150.3 Settlement
    In the proposed rule we amended section 4150.3 by adding a new 
paragraph (f) specifying that if a permittee or lessee obtains a stay 
of a decision that demands payment or cancels or suspends a grazing 
authorization, BLM will allow him to graze under his existing 
authorization pending resolution of the appeal.
    In the final rule, we amended paragraph (f) to make it clear that 
``this part'' refers to all of part 4100, for the benefit of readers 
who may not be familiar with CFR conventions. We also amended this 
paragraph to make it clear that BLM will allow grazing pending the 
completion of the administrative appeal process, rather than judicial 
appeals.
    A few comments addressed this section of the proposed rule. One 
urged BLM to change the regulations to provide that a nonwillful 
livestock grazing use violation can only occur upon a finding that a 
volitional act and/or an act of negligence by the permittee or lessee 
(or an affiliate) caused the violation. It stated that section 4150.3 
should provide that an act of negligence by the permittee or lessee is 
required as a precedent to a finding of nonwillful livestock grazing 
trespass, so that BLM does not cite permittees and lessees for trespass 
when, for example, livestock stray from their authorized pasture 
because another party left a gate open.
    BLM disagrees with this view. Nonwillful unauthorized grazing use 
occurs when the operator is not at fault, such as when cattle stray 
from their authorized place of use because a third party left a gate 
open. In contrast, willful unauthorized grazing use occurs, for example, 
when the use results from a volitional act and/or act of negligence

[[Page 39487]]

committed by a permittee, lessee, or affiliate. The grazing regulations 
continue to provide that, under certain circumstances, nonwillful 
violations are eligible for nonmonetary settlement. It also remains a 
prohibited act under the grazing regulations for any person to fail to 
re-close any gate or livestock entry during periods of livestock use.
    Another comment urged that we add language to section 4150.3(e) to 
clarify that BLM cannot withhold a grazing authorization unless: (a) 
Attempts at settlement have failed; (b) BLM has issued a decision that 
finds there has been a violation, demands payment for the amounts due, 
and provides that grazing will not be authorized until payment has been 
received; and (c) any petition for stay of such a decision has been 
denied. The comment stated that some BLM offices have been withholding 
grazing authorizations based on allegations of trespass that have not 
been finally determined upon review, and that this is contrary to legal 
administrative procedure.
    BLM agrees that the regulations require clarification on this 
matter. Some BLM field staff persons have erroneously interpreted 
section 4150.3(e) to mean that they must refuse to process grazing 
applications of and issue grazing fee billings to an alleged trespasser 
during the period after BLM has issued a decision demanding payment but 
before the decision has been finally determined upon review. The 
proposed rule included new Sec.  4150.3(f) providing that, should a 
decision issued under section 4150.3(e) that demands payment for 
outstanding unauthorized use fees and penalties be administratively 
stayed, BLM will authorize grazing under the regulations pending 
resolution of the appeal. BLM may not withhold authorization to graze 
under this section unless BLM has issued a decision under subpart 4160 
demanding payment for the amount due, the decision is in effect, and 
the amount has not been paid.
    One comment urged BLM to provide in the regulations for mandatory 
cancellation or suspension of grazing authorizations, or denial of 
applications for grazing use, if permittees or lessees fail to pay 
trespass fees and fines that BLM finds are due under section 4150.3, so 
that the permittee or lessee does not unduly evade or delay payment.
    The regulation referenced by the comment provides that ``[t]he 
authorized officer may take action under subpart 4160 to cancel or 
suspend grazing authorizations or to deny approval of applications for 
grazing use until such amounts have been paid.'' This regulation gives 
BLM permission to take action under 4160--in other words, issue a 
grazing decision--in this circumstance. Subpart 4160 requires BLM to 
issue a grazing decision, with right of protest and appeal, to cancel 
or suspend grazing authorizations or to deny approval of applications 
for grazing use. BLM sees no need to mandate that failure to pay 
trespass fees will result in suspension. Facts and circumstances in 
each trespass case are unique, and BLM prefers to retain its discretion 
to determine when it would be appropriate to cancel or suspend a permit 
or lease.

Subpart 4160--Administrative Remedies

Section 4160.1 Proposed Decisions
    Existing section 4160.1(c) provides that an authorized officer may 
elect not to issue a proposed decision where he has made a 
determination in accordance with section 4110.3-3(b) or section 
4150.2(d), which allow under certain circumstances the authorized 
officer to make a decision effective upon issuance or a date specified 
in the decision. The final rule amends section 4160.1(c) to reflect the 
addition of section 4130.6-2(b) in this rule, and the addition of 
section 4190.1(a) in a previous rulemaking (68 FR 33804, June 5, 2003). 
The final rule now includes cross-references to all BLM grazing 
regulations allowing decisions to be made effective upon issuance or a 
date specified in the decision.
    We also proposed to amend this section to provide that a BA or BE 
that BLM prepares for purposes of the ESA (16 U.S.C. 1531-1544) is not 
a proposed decision for purposes of a protest to BLM, or a final 
decision for purposes of an appeal to OHA under the TGA. Pursuant to 
the Secretary's supervisory authority, this provision prospectively 
supersedes the decision in Blake v. BLM, 145 IBLA 154, 166 (1998), 
aff'd, 156 IBLA 280 (2000), which held that the protest and appeal 
provisions of 43 CFR subpart 4160 apply to a proposed change in a 
permit or lease evaluated in a BA or BE.
    Proposed section 4160.1(d) provided that a BA or BE prepared for 
purposes of an ESA consultation or conference is not a decision for 
purposes of protest or appeal. The final rule clarifies the proposed 
rule by adding the words ``by BLM'' after the word ``prepared.''
    Comments opposed this section and stated that it effectively 
eliminates all administrative appeals of grazing permit or lease terms 
and conditions that result from a BA and related BO. Other comments 
said that where the terms and conditions of a grazing lease or permit 
were required by a BO, the terms and conditions should be subject to 
appeal if they were substantially the same terms and conditions 
submitted by BLM in a BA or BE. Both the TGA, 43 U.S.C. 315, and the 
APA, 5 U.S.C. 551 et seq., provide for administrative appeals, comments 
noted.
    Other comments pointed out that proposed section 4130.3(b)(1) 
presented similar problems. That section states that permit or lease 
terms and conditions may be protested and appealed unless they are not 
subject to review by OHA. This would include grazing permit or lease 
terms and conditions required as a result of ESA consultation. Comments 
opposed this provision, arguing that it denied permittees and members 
of the public opportunities to correct mistakes in an agency BE.
    Regulations at 50 CFR 402.02 and 402.12 make it clear that a BA or 
BE is an intermediate step that BLM will take in assessing its 
obligations under the ESA, and thus is not subject to appeal. A BA or 
BE does not grant or deny a permit application, modify a permit or 
lease, or assess trespass damages, which are examples of BLM decisions 
that are subject to appeal.
    A BA or BE is not a proposed decision for purposes of a protest to 
BLM, or a final decision for purposes of an appeal to OHA under the 
TGA. The final rule at section 4160.1(d) prospectively supersedes a 
requirement imposed by IBLA in Blake v. BLM, 145 IBLA 154 (1998), 
aff'd, 156 IBLA 280 (2002), that BLM issue a BE or BA as a proposed 
decision that may be protested and appealed (as if it were a grazing 
decision), even though a BE or BA does not take action, require action, 
or implement anything.
    As explained in the preamble to the proposed rule at 68 FR 68464, a 
BA or BE is a tool that FWS and NOAA Fisheries use to decide whether to 
initiate formal consultation under Section 7 of the ESA. Formal 
consultation results in a BO prepared by FWS. TGA Section 9 hearings 
are administered by OHA, a body that has been delegated authority 
regarding public land use decisions, but has not been delegated 
authority over FWS actions. See Secretarial Memorandum of January 8, 
1993 (Secretary Lujan); Secretarial Memorandum of April 20, 1993 
(Secretary Babbitt). The ESA does not require or authorize the creation 
of an administrative appeal procedure for biological opinions, and 
instead authorizes direct suit in a Federal court. 16 U.S.C. 1540(g). A 
BO may be challenged in Federal court under the APA. Bennett v. Spear, 
520 U.S. 154,

[[Page 39488]]

178 (1997). Thus, direct legal remedies are already in place and OHA 
has not been delegated administrative review authority over BOs issued 
by FWS.
    OHA's review is limited to the merits of the BLM decision and can 
not extend to the validity of the BO findings or the FWS procedures 
used to produce the opinion. This final rule does nothing to change 
this longstanding policy, which is summarized in Secretary Lujan's 
memorandum as follows: ``In summary, OHA has no authority under 
existing delegations to review the merits of FWS biological opinions. 
Any review of biological opinions would necessarily be limited to the 
federal district courts pursuant to Section 11(g) of the ESA. The 
longstanding administrative practice of not providing OHA review of the 
biological determinations of the FWS under the ESA, the specific 
remedies provided by the ESA itself, and the need for expedited 
treatment, all militate against a change to the existing delegations.''
    One comment stated that BLM should clarify exactly which terms and 
conditions in a permit or lease resulting from a biological opinion may 
be appealed to the Office of Hearings and Appeals (OHA).
    Section 4130.3(b)(1) of the proposed rule included a provision that 
specified that the terms and conditions mandated by a biological 
opinion are not subject to review by OHA. BLM intends to drop this 
provision in the final rule. The regulatory language in the proposed 
rule at section 4130.3-3(b) reflected Departmental policy as explained 
in two 1993 Secretarial memoranda. These memoranda state that the OHA 
does not have the authority to review biological opinions. Such review 
is provided by the Federal Courts through Section 11(g) of the ESA. 
Although we have removed proposed paragraph (b)(1) in the final rule, 
BLM is not changing its longstanding policy. BLM is dropping proposed 
paragraph (b)(1) because the Secretarial memoranda are sufficient.
    Another comment stated that an appeal to OHA should not be allowed 
as to stipulations resulting from interagency programmatic 
consultations, or from interagency coordination intended to substitute 
for formal consultation. The comment stated that if these stipulations 
could be removed through appeal, it may be necessary to re-initiate 
formal consultation or renegotiate interagency agreements, which would 
negate the streamlining efforts by both BLM and the FWS.
    Issues of OHA jurisdiction are better addressed in the OHA 
regulations or through Secretarial directives. BLM must avoid 
jeopardizing the continued existence of any listed species, and will 
formally consult with the FWS and the National Marine Fisheries Service 
whenever appropriate.
    One comment suggested that the rule be amended at section 4160.1(d) 
to state that, although biological assessments are not decisions that 
can be protested or appealed, the facts and findings of biological 
assessments may be challenged in a grazing protest or appeal.
    Section 4160.1(d) states that a BA prepared for the purposes of an 
ESA consultation or conference is not a decision for purposes of 
protest or appeal. This provision ensures consistency with the ESA 
regulations, such as 50 CFR 402.02 and 402.12, which define BAs as 
documents that evaluate the potential effects of an action or 
management proposal on listed or proposed species and designated or 
proposed critical habitat. BAs are not documents that authorize an 
action. Therefore, BAs cannot be protested or appealed. BLM believes 
that the language in the final rule at section 4160.1(d) is clear and 
appropriate in this regard, and we have not adopted the comment in the 
final rule.
    One comment stated that whether grazing may continue while an 
administrative stay is in effect is a decision that should be based on 
what is best for the resource. A similar comment stated that 
maintaining or improving rangeland health should be the overriding 
concern in grazing management, including how the range is managed 
during appeal. Another comment asked specifically that BLM clarify how 
threatened and endangered species would be protected when grazing 
continues during OHA consideration of an appeal, and how any loss of 
species or habitat would be remedied once the appeal is resolved.
    The proposed rule recognizes the continuing nature of grazing 
operations and is consistent with the Administrative Procedure Act 
requirement that ``a license with reference to an activity of a 
continuing nature'' does not expire until an agency makes a new 
determination (5 U.S.C. 558). In light of this, section 4160.4(b) 
provides that grazing may continue when a decision affecting a grazing 
permit or lease has been stayed by OHA. BLM believes that actively 
managing the use of the rangelands and not automatically halting 
grazing when a stay is issued is consistent with BLM's obligations 
under FLPMA and the TGA.
    In response to comments, BLM plans to limit the application of 
paragraph (b) to certain types of grazing decisions--
    ? Those that cancel or suspend a permit or lease, or change 
any term or condition during its current term or renew a permit or lease,
    ? Those that issue or deny a permit or lease to a preference 
transferee; or
    ? Offer a preference transferee a permit or lease with terms 
and conditions that differ from those in the previous permit or lease.
    In addition, BLM is entirely removing proposed section 4160.4(c) 
from the rule.
    BLM agrees that the condition of the rangeland and protection of 
species listed under the ESA must be considered in making grazing 
decisions and in instances where there is a stay of a decision. BLM 
takes these matters into account in making grazing decisions and, when 
necessary to protect resources or species, can issue a decision that is 
effective immediately (section 4110.3-3(b)(2) in the final rule). The 
IBLA also has the flexibility to issue a stay in whole or in part so 
that resources and species may be protected (43 CFR 4.21(b)(4)).
Section 4160.37 Final Decisions
    We proposed to amend section 4160.3 by moving the discussion of 
appeal procedures in paragraph (c) to, and combining it with, existing 
section 4160.4 as a new paragraph (a).
    We also moved and revised paragraphs (d) and (e) of section 4160.3, 
regarding grazing use when OHA has granted a stay of a final grazing 
decision, to section 4160.4.
    In the final rule, we have added necessary cross-references to 
paragraph (c) to conform the paragraph to changes made in other 
sections in this rule and in a previous final rule (68 FR 33804, June 
5, 2003). The final rule now includes cross-references to sections 
4110.3-3(b), 4130.6-2(b), 4150.2(d) and 4190.1(a), all of which allow 
under certain circumstances for a decision to be made effective upon 
issuance or a date specified in the decision.
    Comments urged that BLM amend section 4160.3 so that the authorized 
officer cannot make decisions adverse to the livestock grazing 
permittee or lessee effective immediately unless he has found after a 
hearing on the record that the current authorized grazing use poses an 
imminent likelihood of irreparable resource damage. The comment also 
recommended that BLM be barred from making a decision effective 
immediately before the hearing unless the authorized officer declares 
an emergency, after having applied the IBLA standards for a

[[Page 39489]]

stay found in 43 CFR 4.21(b)(1), in which case the decision would be in 
effect only for the 30-day period allowed for filing an appeal. In 
addition, the comment recommended retaining the consultation 
requirements already proposed for section 4160.1. The comment contended 
that BLM grazing decisions over the past 10 years have not been based 
on state of the art rangeland studies, and that the OHA regulations 
misplace the burden of proof on appellants in justifying stays.
    We have not amended the section 4160.3 in the final rule in 
response to these comments. Consultation, cooperation, and coordination 
with affected permittees and lessees are already required before active 
use can be decreased. See 43 CFR 4110.3-3. Further, any reduction in 
active use must be issued as a proposed decision, subject to a possible 
protest before it is finalized, unless the authorized officer documents 
the emergency-type situations listed in section 4110.3-3(b)(1). A 
decision may also be appealed after it is finalized, and a stay of the 
decision may be sought. Thus, the current requirements provide ample 
opportunity for affected permittees and lessees to participate in the 
decisionmaking process. Adding a pre-decisional hearing based on the 
OHA stay standards would unnecessarily limit BLM's ability to respond 
in a timely manner to changing range conditions.
    A number of comments addressed proposed section 4160.3. That 
section provided that, notwithstanding section 4.21(a), BLM may provide 
that a final decision shall be effective upon issuance or on a date 
established in the decision when BLM has made a determination under 
sections 4110.3-3(b) or 4150.2(d). (The latter two provisions authorize 
final decisions effective upon issuance where reductions in permitted 
use or temporary closures are necessary.)
    Comments expressed the opinion that BLM decisions, as a general 
matter, should be suspended pending resolution of an appeal. Comments 
acknowledged that special circumstances could apply, such as the 
likelihood of irreparable resource damage, to render a decision 
effective during this time.
    The comments, if adopted, would, in effect, revive the provisions 
of section 4.21(a) as they existed before its amendment on January 19, 
1993, at 58 FR 4939. Prior section 4.21(a) provided that ``except as 
otherwise provided by law or other pertinent regulation, a decision 
will not be effective during the time in which a person adversely 
affected may file a notice of appeal, and the timely filing of a notice 
of appeal will suspend the effect of the decision appealed from pending 
the decision on appeal.'' (A grazing regulation similar to prior 
section 4.21(a) was changed in 1995.) This prior section was criticized 
because it allowed the filing of an appeal to halt agency action 
without regard to the merits of the appeal.
    Current section 4.21 sets forth a general rule that suspends an 
agency decision for the 30-day period during which appellant may file 
an appeal and request for stay. An appellant seeking a stay must 
demonstrate, among other factors, the likelihood of success on the 
merits of the appeal. We believe this to be a superior rule. It allows 
agency decisions to go into effect reasonably quickly, but allows for a 
stay of such decisions upon a showing as to the likelihood of success 
on the merits and other requirements under section 4.21.
    Proposed section 4160.3 acknowledges the vitality of current 
section 4.21(a) even as it sets forth an exception to its terms. 
Comments in favor of a general rule that would suspend a decision 
during appeal have not been adopted in the final rule.
Section 4160.4 Appeals
    The proposed rule amended section 4160.4 by adding language 
clarifying the extent, if any, that grazing activities are permissible 
after OHA grants a stay of a grazing decision. We are adopting the 
proposed rule with revisions. We are also adopting regulations at 
4130.6-2(b) that address grazing use following a stay of decisions 
regarding annual or ephemeral use and temporarily available forage.
    The current regulations, at section 4160.3(d) and (e), specify a 
number of variables that determine the extent of grazing that will be 
allowed between the grant of an administrative stay and the resolution 
of an administrative appeal. For example, three of the variables in the 
current regulations are whether grazing was authorized in the preceding 
year, whether the decision is ``regarding an application for grazing 
authorization,'' and whether ``grazing use in the preceding year was 
authorized on a temporary basis under section 4110.3-1(a).'' 43 CFR 
4160.3(d). If only the first two variables are present, the applicant 
may continue grazing use at the same level as the preceding year. 
However, if all three variables are present, the regulations imply (but 
do not expressly provide) that ``grazing use shall be consistent with 
the final decision pending the Office of Hearings and Appeals final 
determination on the appeal.'' Id.
    Proposed section 4160.4 described the effects of a stay granted by 
OHA on a grazing decision under appeal, i.e., what happens when OHA 
stays implementation of a grazing decision. In three types of cases 
identified at paragraphs (b)(1), (2), and (3), the proposed rule 
provided that a rancher's immediately preceding authorization and any 
terms and conditions therein will not expire, and the permittee, 
lessee, or preference applicant may continue to graze under the 
immediately preceding grazing authorization, subject to the stay order 
and section 4130.3(b). Proposed paragraphs (b)(1), (2), and (3) 
described those cases that (1) change the terms and conditions of a 
permit or lease during the current term; (2) offer a permit or lease to 
a preference transferee with terms and conditions that are different 
from the permit or lease terms and conditions that are most recently 
applicable to the allotment or portion of the allotment in question; 
and (3) renew a permit or lease with changed terms and conditions.
    The proposed rule also described four types of cases at paragraphs 
(c)(1), (2), (3), and (4) that call for BLM, upon the grant of a stay 
by OHA, to authorize grazing consistent with the final decision under 
appeal. Briefly stated, proposed paragraphs (c)(1), (2), (3), and (4) 
described those cases that (1) modify a permit or lease because of a 
decrease in available acreage; (2) affect an application for ephemeral 
or annual rangeland; (3) affect an application for forage temporarily 
available under section 4110.3-1(a); and (4) affect an application for 
a permit or lease not made in conjunction with a preference transfer.
    Comments expressed support for proposed section 4160.4(b), stating 
that, in effect, the immediately preceding authorization would not be 
terminated, but would be extended for purposes of the stay. This is 
consistent with a stay allowing the status quo to continue, comments 
stated, and allows for continuity of operations when grazing decisions 
are appealed. Other comments thought that our use of the terms 
``authorized'' and ``authorization'' in the proposed rule was confusing 
and should be clarified. We have clarified section 4160.4(b) in the 
final rule to reflect these comments. In the final rule, we state that, 
upon OHA's issuance of a stay of a decision described at paragraph 
(b)(1), BLM will continue to authorize grazing under the permit or 
lease that was in effect immediately before the decision was issued. 
Clarifying language has also been added to paragraphs (b)(2) and 
(b)(3). BLM believes it is important to actively manage the use of the

[[Page 39490]]

rangelands and not automatically halt grazing when a stay of a decision 
is issued. This approach recognizes the continuing nature of grazing 
operations that are authorized through permits and leases as 
contemplated in the APA (5 U.S.C. 558(c)).
    We invited comment (at 68 FR 68465) on how we might effectively 
incorporate the provisions of the APA at 5 U.S.C. 558(c) and the APA 
judicial review ``finality'' provision at 5 U.S.C. 704. Section 558(c) 
provides in part, ``When the licensee has made timely and sufficient 
application for a renewal or a new license in accordance with agency 
rules, a license with reference to an activity of a continuing nature 
does not expire until the application has been finally determined by 
the agency.'' The APA's exhaustion requirements are found at 5 U.S.C. 
704. As explained in our proposed rule at 68 FR 68465, an agency action 
is not considered final for purposes of judicial review where the 
agency requires by rule that an administrative appeal to a superior 
agency authority be filed and provides that the agency action is 
inoperative while the appeal is pending.
    A comment from OHA suggested elimination of proposed section 
4160.4(c), stating that the rationale for authorizing grazing 
consistent with the stayed decision does not logically apply to the 
cases described at paragraphs (c)(2) and (c)(3), which address forage 
available on ephemeral or annual rangeland or ``temporarily 
available.'' Such forage is, inherently, not reliably available from 
year to year, and BLM allocates it on a short-term basis of a year or 
less. Decisions allocating this type of forage do not involve activity 
of a continuing nature under 5 U.S.C. 558(c). We agree with this 
comment, and have adopted section 4130.6-2(b) in lieu of proposed 
regulations at section 4160.4(c)(2) and (c)(3).
    This same comment stated that it was difficult to evaluate proposed 
section 4160.4(c)(4) without knowing the full range of decisions to 
which it would apply, but that it seemed odd to provide for stay 
petitions in a given category of cases and also provide that, if a stay 
is granted in such cases, grazing will be authorized regardless of the 
stay. If an administrative process is worth having, the comment stated, 
effect arguably should be given to any stays that are granted.
    Other comments expressed concerns about trying to identify the 
types of cases to which paragraphs (b) and (c) of section 4160.4 might 
apply. It is impossible to anticipate all types of appeals that might 
be encountered because grazing decisions do not fit neatly into one of 
the listed categories, these comments stated.
    As a result of the concerns expressed in these comments, we have 
entirely removed proposed section 4160.4(c) from the final rule and 
limited paragraph (b) to apply to a very circumscribed set of 
circumstances. With the intention of simplifying these provisions, and 
improving administrative efficiency, we are revising the regulations 
proposed at section 4160.4(b) to address the following kinds of BLM 
grazing decisions:
    ? Those that cancel or suspend a permit or lease, those that 
renew a permit or lease, and those that modify terms and conditions of 
a permit or lease during its current term;
    ? Those that issue or deny a permit or lease to a preference 
transferee; and
    ? Those that offer a preference transferee a permit or lease 
with terms and conditions that differ from those in the previous permit 
or lease.
    If a BLM decision renews, cancels, or suspends a permit or lease, 
or makes changes to terms and conditions of a permit or lease, and all 
or some of these changes are stayed by OHA pending appeal, then, under 
paragraph (b)(1), the affected permittee or lessee may graze in 
accordance with the comparable provisions of the immediately preceding 
permit or lease that were changed or deleted by the BLM decision under 
appeal, subject to any applicable provisions of the stay order.
    Under paragraphs (b)(2) and (b)(3), stays of decisions relating to 
preference transfers are treated in an analogous manner. If the stay is 
of a decision issuing or denying a permit or lease to a preference 
transferee, BLM will issue the preference applicant a permit or lease 
with the same terms and conditions as the most recent permit or lease 
of that allotment or part thereof, under paragraph (b)(2). If the stay 
is of a decision issuing the preference transferee a permit or lease, 
but with changed terms and conditions, BLM will offer the permit or 
lease with those stayed terms and conditions stated as they appeared in 
the most recent grazing authorization pertinent to that allotment, 
under paragraph (b)(3).
    So, although the grazing decision appealed is stayed, grazing can 
continue at the previous levels of use, as provided by the APA. This 
ensures that the decision appealed is rendered inoperative for 
exhaustion purposes under 5 U.S.C. 704 and the status quo prior to 
issuance of the decision appealed remains in effect. In the instance of 
an appeal and stay preventing implementation of a new grazing 
authorization, the fact that a permittee may still be authorized to 
graze at some level is not a function of the stayed decision being 
implemented, but is consistent with the APA's concept that existing 
authorizations remain in effect until an agency makes a final decision 
on a new authorization. It is worth noting that the APA provides at 5 
U.S.C. 558(c) that existing authorizations remain in effect until an 
agency makes a final decision on a new authorization. BLM is making 
these changes to balance the exhaustion of administrative remedies 
under the APA and our responsibilities under FLPMA and TGA to--
    ? Manage lands for multiple use and sustained yield,
    ? Regulate the occupancy and use of the rangelands,
    ? Safeguard grazing privileges,
    ? Preserve the public rangelands from destruction or 
unnecessary injury, and
    ? Provide for the orderly use, improvement, and development 
of the range.
    There is no need for a provision equivalent to proposed section 
4160.4(c)(1) in the final rule. That paragraph provided that, 
notwithstanding a stay order by OHA, we would authorize grazing 
consistent with our decision that modifies a permit or lease because of 
a decrease in acreage available for grazing. On internal review, we 
found the proposed provision unnecessary in light of the provision in 
section 4110.4-2(b), which gives grazers a 2-year lag time to reduce 
grazing in decreased acreage situations.
    In our proposed rule at 68 FR 68455, we noted that we were not 
addressing whether BLM would be assigned the burden of proof in 
appeals. A number of comments thought that this topic should have been 
addressed, and moreover that BLM should bear the burden of proof to 
support its decisions. Several cited the APA in support. Section 7 of 
the APA, 5 U.S.C. 556(d), provides that ``[e]xcept as otherwise 
provided by statute, the proponent of a rule or order has the burden of 
proof.''
    We believe the comments lack merit for the reasons stated in our 
proposed rule. Each case must be analyzed on its own terms to determine 
the identity of the proponent of a rule or order. A one-size-fits-all 
rule would be difficult to craft. Case law of IBLA has answered this 
question in one context: Where a rancher is claimed to have allowed 
cattle to graze in trespass, BLM has the burden of proof. BLM v. 
Ericsson, 88 IBLA 248, 255, 261 (1985). However, as we pointed out in 
the proposed rule (68 FR 68456), if BLM denies a permit or lease to a 
new grazing applicant, that

[[Page 39491]]

applicant would have the burden of showing where BLM erred in its 
decision. See West Cow Creek Permittees v. BLM, 142 IBLA 224, 236 
(1998).
    One comment said that we should not have cited in our proposed rule 
a workers compensation board case when discussing who bears the burden 
of proof in grazing appeals.
    We cited Director, Office of Workers' Compensation Programs v. 
Greenwich Collieries, 512 U.S. 267 (1994), in our proposed rule because 
it is a fairly recent case of the U.S. Supreme Court that examines 
section 7 of the APA in considerable detail. Section 7 is key to any 
decision assigning the burden of proof in a formal APA hearing.
    A number of comments suggested that BLM consider imposing bonds on 
appellants who are not directly affected by a BLM decision in order to 
help pay for adverse economic impacts to permittees during the 
adjudication of an appeal. We have not adopted the comment.
    In order for an appeal to be filed, the person or entity filing an 
appeal must be adversely affected by a decision of BLM. 43 CFR 4160.4. 
It is thus unclear who would have to obtain the bond suggested by 
comments. A bond is ordinarily required by BLM to protect the interests 
of the United States. In such a case, the holder of a permit would have 
to obtain a bond in order to secure the obligations imposed by the 
permit and applicable laws and regulations. See, e.g., 43 CFR 
2805.12(g) (bonding for rights-of-way.)
    One comment stated that only those individuals who are directly 
affected by a decision and can meet the standing requirements of 43 CFR 
part 4 should be able to appeal terms and conditions contained in a BLM 
grazing decision.
    Regulations at 43 CFR 4.470(a) provide that any applicant, 
permittee, lessee, or any other person whose interest is adversely 
affected by a final decision may appeal to an administrative law judge. 
Thus, the requirement that an appellant be directly affected appears to 
be set forth in existing regulations. This requirement is also set 
forth in the standing regulations of IBLA, which require that an 
appellant be a party to the case and adversely affected by the decision 
on appeal. A party is adversely affected when that party has a legally 
cognizable interest and the decision on appeal has caused, or is 
substantially likely to cause, injury to that interest (43 CFR 
4.410(d)).
    One comment stated that BLM regulations should provide for 
independent science panels to examine and resolve grazing-related disputes.
    We have not adopted this comment in the final rule. We believe that 
the formal APA hearing provided by the TGA, with its opportunity for 
presentation of evidence, cross-examination of witnesses, and decision 
by an impartial tribunal, provides an opportunity for the evidence, 
including scientific evidence, to be impartially examined.
    It should be noted that there are mechanisms in place for providing 
science advice and input before the issuance of a proposed and final 
grazing decision. Existing regulations at 43 CFR 1784.6-1 and 1784.6-2 
provide for the formation of a RAC, whose function is to ``advise * * * 
the Bureau of Land Management official to whom it reports regarding the 
preparation, amendment and implementation of land use plans for public 
lands and resources within its area.'' RACs, in turn, may provide for 
the formation of ``Rangeland Resource Teams,'' whose function is 
``providing local level input to the resource advisory council'' 
regarding issues pertaining to the administration of grazing on public 
land within the area for which the rangeland resource team is formed. 
43 CFR 1784.6-2(a)(1)(iv). While a rangeland resource team is not an 
independent science panel, one of its functions is to examine and 
provide the RACs advice regarding grazing-related disputes. The 
rangeland resource team, in turn, may request that BLM form a technical 
review team from Federal employees and paid consultants whose function 
is to ``gather and analyze data and develop recommendations [for 
consideration by the rangeland resource team]
to aid the decisionmaking 
process * * *.'' Id. Ultimately, if BLM's decision is disputed despite 
the efforts and advice of these groups, it may be protested and 
appealed under subpart 4160 and part 4.
    One comment said that BLM should add to its regulation a 
requirement that all parties in a dispute must first litigate under the 
OHA administrative process to allow field solicitors to develop and 
resolve cases before they are filed in Federal Court.
    The comment is in effect asking for a regulation requiring 
exhaustion of administrative remedies. The APA addresses exhaustion at 
5 U.S.C. 704, and OHA regulations cross-reference this provision. OHA's 
exhaustion requirement appears at 43 CFR 4.21(c) and 4.479(e). Those 
regulations state that no decision which at the time of its rendition 
is subject to appeal to OHA shall be considered final so as to be 
agency action subject to judicial review under 5 U.S.C. 704, unless a 
petition for stay of the decision has been filed in a timely manner and 
the decision being appealed has been made effective pending the appeal. 
For further discussion of administrative exhaustion and judicial 
review, see the proposed rule at 68 FR 68465.

Subpart 4170 Penalties

Section 4170.1-2 Failure To Use
    The proposed rule removed the term ``permitted use'' from this 
section and replaced it with the term ``active use'' to be consistent 
with the definitions in section 4100.0-5.
    One comment addressed this section, stating that BLM should not 
cancel a permit or lease for failure to make substantial use as 
authorized or for failure to maintain or use water base property for 2 
consecutive grazing fee years. The comment averred that this provision 
could be construed to mean that if a well on private property is not 
used for 2 years then BLM can cancel all or part of the lease. It went 
on to say that BLM through its regulations is placing an unfair burden 
on the lessee in his ability to obtain financing from a local lender, 
that BLM's threat to cancel or suspend active use creates a major 
obstacle in producing a feasible financial plan required by the lender, 
and that lenders would not be impressed with a plan that would force 
them to term out a loan over a period of time based on BLM's whim to 
create uncertainty and prevent a positive cash flow for the borrower.
    BLM disagrees. As indicated by the TGA, Congress intends grazing 
permits and leases to be used for grazing purposes as ``necessary to 
permit the proper use of lands, water or water rights owned, occupied, 
or leased by'' the permittees or lessees. Failure of a permittee or 
lessee to maintain or use water base property in the grazing operation 
would indicate that the grazing operator is not making ``proper use'' 
of the water. Under these circumstances, it would be appropriate to 
revoke the grazing privileges that had been associated with that water, 
and to award them to someone who would maintain or use some other 
nearby water in the furtherance of his livestock operations. 
Agricultural lenders are, or should be, aware that retention of a BLM 
permit or lease is contingent upon the permittee or lessee complying 
with the grazing regulations that govern the permits and leases.

[[Page 39492]]

Subpart 4180--Fundamentals of Rangeland Health and Standards and 
Guidelines for Grazing Administration

Section 4180.1 Fundamentals of Rangeland Health
    In the proposed rule, we revised the introduction of section 4180.1 
to provide that BLM will take action to change grazing management so 
that it will assist in achieving the fundamentals only if there are no 
applicable standards and guidelines in place. Also, we amended the 
introduction to change the amount of time within which BLM would need 
to take action to ensure that resource conditions conform to the 
requirements of this section. In the proposed rule the deadline changed 
from not later than the start of the next grazing year to not later 
than the start of the grazing year following BLM's completion of 
action, including consultation under sections 4110.3-3 and 4130.3-3 and 
meeting all relevant and applicable requirements of law and regulations.
    As a result of comments, we are amending section 4180.1 in the 
final rule to clarify the relationship between the fundamentals and the 
standards and guidelines. Specifically, we are replacing the first 
paragraph of the existing 4180.1 with the following: ``Standards and 
guidelines developed or revised by a Bureau of Land Management State 
Director under Sec.  4180.2(b) must be consistent with the following 
fundamentals of rangeland health.'' The fundamentals themselves remain 
as approved in 1995.
    This change recognizes the relationship of the standards and 
guidelines to the fundamentals. The fundamentals are broad national 
goals, whereas the standards are applicable at the local and regional 
level. The proposed rule would have restricted regulatory action under 
section 4180.1 to geographic areas without approved standards and 
guidelines. But these areas were already subject to the fallback 
standards and guidelines in section 4180.2.
    Comments received highlighted that fallback standards and 
guidelines are in place if state or regional standards and guidelines 
have not been developed, and so application of the fundamentals is not 
necessary in those instances. Comments also characterized the 
fundamentals as encompassing critical requirements not included in all 
standards and guidelines. A more precise way to look at the 
fundamentals and the standards and guidelines is to examine the 
differing character of these provisions. Standards of land health are 
expressions of physical levels and biological condition, or the degree 
of function required for healthy lands and sustainable uses. These 
standards define minimum resource conditions that must be achieved and 
maintained. A guideline is a practice, method, or technique determined 
to be appropriate to ensure that standards can be met or that 
significant progress can be made toward meeting the standard. 
Guidelines are tools such as grazing systems, vegetative treatments, or 
improvement projects that help managers, permittees, and lessees 
achieve standards. A guideline may be adapted or modified when 
monitoring or other information has shown that the guideline is not 
effective, or that a better means of achieving the applicable standards 
is available. (BLM Handbook H-4180-1)
    The 1994 Draft Environmental Impact Statement described the broad 
nature of the fundamentals, stating that they were intended to 
``reflect the fundamental legal mandates for the management of public 
lands under the Taylor Grazing Act, FLPMA, Endangered Species Act, 
Clean Water Act, and other relevant authorities.'' (1994 Draft EIS, 
page 1-16.) The 1994 Draft EIS also described the fundamentals as 
providing the foundation for developing the standards and guidelines. 
The fundamentals were intended to ``establish clear national 
requirements for the preparation of State or regional standards and 
guidelines.'' (1994 Draft EIS, page 1-15.) BLM complies with these 
broad requirements in relevant laws and regulations through permit and 
lease terms and conditions.
    Once the standards and guidelines were developed, they became the 
focus for assessing rangeland health, and for making determinations as 
to whether existing grazing management was a cause for not meeting 
standards and needed to be altered to achieve the locally applicable 
standards and guidelines. Since the adoption of state or regional 
standards and guidelines, BLM has relied on the standards and 
guidelines to evaluate rangeland health. BLM is not aware of instances 
where the standards and guidelines have not been relied upon. Before 
the regulatory deadline for completing state or regional standards and 
guidelines or the effective date of the fallback standards and 
guidelines (43 CFR 4180.2(f)), BLM could have invoked the requirement 
that it take ``appropriate action'' under section 4180.1 to make 
changes to grazing permits and leases. However, BLM has relied on the 
similar, so-called ``action forcing'' provision in section 4180.2 to 
change existing livestock management in order to achieve locally 
tailored state or regional standards and guidelines, or the fallback 
standards and guidelines, once state or regional standards and 
guidelines were implemented, or the fallbacks became effective as 
provided in the regulations. This is consistent with how BLM described 
the standards and guidelines when they were first proposed in 1994--
i.e., as functioning to ``focus BLM's management direction, promote 
biological diversity, and improve agency efficiency in meeting 
management objectives.'' (1994 Draft EIS, page 4-39.)
    Standards describe the biological and physical conditions that can 
be assessed to determine rangeland health, and guidelines are designed 
to aid BLM in determining appropriate grazing management. The 
fundamentals, in contrast, are designed as broad, overarching goals, 
and reflect such relevant laws as the Clean Water Act, TGA, FLPMA, and 
the Endangered Species Act. Compliance with these laws already occurs 
through appropriate terms and conditions.
    Although the 1995 rule established requirements for ``appropriate 
action'' when either the fundamentals or established standards and 
guidelines were not being met because of existing grazing, the 
redundancy of requiring ``appropriate action'' in both circumstances is 
unnecessary and inefficient, and impedes implementation. The current 
regulations are inefficient and imprecise and, as a result, difficult 
to administer. The broad description of condition and general 
ecological processes set forth in the fundamentals make it very 
difficult to link these broad characteristics to a determination that 
livestock grazing is the cause of these watershed or ecological process 
conditions. As discussed previously, standards set forth a descriptive 
condition of expected rangeland health, and guidelines describe 
methods, practices, or techniques to meet standards. Fundamentals, on 
the other hand, are broad goals that are less susceptible to clear 
linkage to just one use.
    Standards and guidelines have been developed in conformance with 
the fundamentals and adopted for all states and regions except southern 
California. These standards and guidelines provide the basis for the 
application of the broadly stated fundamentals to the management of 
public lands. In southern California, the fallback standards and 
guidelines provide for the application of the fundamentals to those 
public lands. Because the standards and guidelines are meant to provide 
specific measures for achieving healthy rangelands within the framework 
of the broad fundamentals, a duplicate

[[Page 39493]]

administrative mechanism to require ``appropriate action'' under the 
fundamentals is unnecessary.
    The final rulemaking recognizes the relationship of the standards 
and guidelines to the fundamentals. We do not anticipate an adverse 
environmental impact from the fundamentals provision, as revised, but 
rather anticipate overall long-term improvements in rangeland 
conditions. This is based on the continued application of the standards 
and guidelines, continued relevance of the fundamentals when standards 
and guidelines are developed or revised, continued application of 
relevant laws that were the basis for the fundamentals, and continued 
use of the fundamentals to identify general characteristics of a 
functional rangeland ecosystem in broad land use plans and allotment 
management plans.
    BLM will ensure that any standards and guidelines developed or 
revised are consistent with the fundamentals, which remain unchanged 
from 1995. By requiring newly developed or revised standards and 
guidelines to be consistent with the fundamentals, the final rule will 
provide clear guidance for any future effort to develop or revise the 
standards and guidelines. BLM will continue to utilize the standards 
and guidelines to assure that livestock grazing is conducted 
consistently and in accordance with principles already being used in 
rangeland ecosystems.
    In the final rule, in response to public comments as discussed 
below, we have also amended paragraph (d) to remove the reference to 
``at-risk'' species.
    Some comments expressed concern that BLM was replacing the 
fundamentals of rangeland health in section 4180.1 with the rangeland 
health standards in section 4180.2. The reasons given for concern were: 
(1) BLM might no longer take action if we determined that conditions 
expressed as fundamentals of rangeland health did not exist; (2) BLM 
would not be able to evaluate the effectiveness of state or regional 
guidelines; and (3) land health standards would take precedence over 
the fundamentals.
    Land health standards do not replace or take precedence over the 
fundamentals of rangeland health, but further define the conditions 
that must exist in order to achieve fundamentals of rangeland health at 
the local or regional level. The effectiveness of state or regional 
guidelines will be determined by evaluating whether or not standards 
are met when the guidelines are followed. The purposes of the change in 
section 4180.1 are--
    ? To make it clear that the fundamentals are the overarching 
principles that managers aspire to meet when devising standards and 
operating under guidelines in accordance with section 4180.2, and
    ? To remove an operational redundancy.
    This redundancy in the current regulations requires BLM to do two 
things:
    (1) To modify grazing practices or take other possible appropriate 
action when e determine that livestock grazing is a significant 
contributing factor to failing to meet one or more standards or conform 
with guidelines (the final rule retains this requirement), and
    (2) To modify grazing practices or take other possible appropriate 
action when we determine that it is necessary to do so to ensure that 
the conditions described by the fundamentals exist (the final rule 
removes this requirement).
    A comment suggested removing or revising section 4180.1 because, as 
framed in the current rules, the fundamentals do not conform to the 
concepts and parameters presented in the National Research Council's 
1994 publication ``Rangeland Health, New Methods to Classify, 
Inventory, and Monitor Rangelands,'' and ``New Concepts for Assessment 
of Rangeland Condition'' (Journal of Range Management, SRM 48(3), May 
1995). It also suggested that the Criteria and Indicators developed by 
the Sustainable Rangeland Roundtable be incorporated into subpart 4180.
    BLM considered the National Research Council publication in 1995 in 
developing national requirements that describe the necessary physical 
components of healthy rangelands. (Rangeland Reform '94 Final 
Environmental Impact Statement, p13). These national requirements were 
retitled the ``fundamentals of rangeland health'' in the 1995 final 
rule (60 FR 9954). The Journal of Range Management article ``New 
Concepts for Assessment of Rangeland Condition'' provided a number of 
recommendations for assessing and reporting range condition based on 
ecological sites and ``Site Conservation Ratings.'' The fundamentals of 
rangeland health are not intended to describe a condition rating 
system; rather, they describe a threshold condition which either exists 
or does not exist. BLM has been a participant in the ``Sustainable 
Rangeland Roundtable,'' and the work of that group is ongoing. We have 
determined that further adjustments of the regulations to be consistent 
with the ``Sustainable Rangeland Roundtable'' products would be 
premature at this time.
    Other comments suggested moving the fundamentals of rangeland 
health from the grazing regulations in subpart 4180 to the planning 
regulations in subpart 1610, stating that the fundamentals are clearly 
planning rather than management concepts. According to the comments, 
the move would accomplish the 3 criteria listed in the Federal Register 
(68 FR 68457): (1) Promoting cooperation with affected permittees, 
especially land owners; (2) promoting practical mechanisms for 
protecting rangeland health, and (3) improving administrative 
efficiencies.
    As explained in the proposed rule (68 FR at 68457), we did not 
consider it appropriate to expand the scope of this rulemaking to 
address planning regulations at subpart 1610.
    A number of comments addressed the references to ``at-risk and 
special status species'' and the ESA in subpart 4180. All suggested 
removing the term ``at risk species'' found in sections 4180.1(d), 
4180.2(d)(4), 4180.2(e)(9), and 4180.2(f)(2)(viii) because it is not a 
term used or authorized in the ESA. Most expressed concern that 
including the term would lead to single species management when BLM 
should be managing for plant and animal communities and ecosystems. 
Some also suggested removing the term ``special status species'' for 
the same reasons.
    FLPMA directs BLM to manage for multiple uses, including native 
vegetation communities, and food and habitat for wildlife as well as 
livestock. Even though it is preferable to manage native plant and 
animal communities or ecosystems, the ESA requires threatened and 
endangered species to be managed by BLM, species by species. ``Special 
status species'' is defined in BLM Manual 6840, Special Status Species 
Management, and includes listed, proposed and candidate species, state-
listed species, and sensitive species. Considering ``other special 
status species'' in standards and guidelines (4180) will identify 
potential management opportunities to avoid future listing of state 
listed and sensitive species. Once a species is listed under the ESA, 
multiple use management becomes increasingly complex and uses of the 
public lands may become more restricted. Thus, BLM needs optimum 
habitat conditions for all special status species. However, because the 
term ``at-risk species'' is not defined in ESA or in BLM manuals or 
handbooks, we have removed it from the final rule. The rule retains the 
term ``special status species,'' because it is consistent with our

[[Page 39494]]

objectives in subpart 4180 and is clearly defined in BLM Manual 6840.
Section 4180.2 Standards and Guidelines for Grazing Administration
    In the proposed rule we would have revised paragraph (c) of section 
4180.2 to provide that we would require both assessments of standards 
attainment and monitoring to support a determination that grazing 
practices are a significant factor in failing to achieve, or not making 
significant progress towards achieving, rangeland health standards. We 
have amended this proposal in the final rule. Under the final rule, if 
a standards assessment indicates to the authorized officer that the 
rangeland is failing to achieve standards or that management practices 
do not conform to the guidelines, then he will use existing or new 
monitoring data to identify the significant factors that contribute to 
the failure or lack of conformance.
    We also amended paragraph (c) in the proposed rule to provide that 
within 24 months following a determination that current grazing 
practices are a significant factor in failing to achieve or make 
progress towards achievement of standards and/or conform with 
guidelines, BLM will, in compliance with applicable law and with 
consultation requirements, analyze appropriate action and then issue a 
final decision regarding the appropriate action it intends to implement 
to remedy the failure to meet the standards and/or execute a documented 
agreement regarding the appropriate action with the permittee(s) or 
lessee(s) and the interested public. This change recognizes the 
decision process specified at subpart 4160 that BLM employs to 
implement management actions. This requirement to issue a ``final'' 
decision within 24 months recognizes that in most cases, in accordance 
with subpart 4160, BLM final decisions are preceded by proposed 
decisions that may be protested within 15 days of receipt, and that BLM 
then must address any protest in the final decision. The 24-month 
deadline within which BLM must issue a final decision (in the absence 
of, or in addition to, the execution of an agreement) is intended to 
accommodate both the 15-day protest period afforded to recipients of 
proposed decisions and the time needed for BLM then to address the 
protest and issue its final decision.
    We are adopting the proposal in the final rule. BLM may extend the 
24-month deadline when the legal responsibilities of another agency 
prevent completion of all legal obligations within the 24 months. We 
made this change to allow for the infrequent occasions when additional 
time is needed to fulfill required legal and consultation obligations 
that are outside BLM's purview and control. Upon executing the 
agreement, or in the absence of a stay of the final decision, BLM must 
implement the appropriate action as soon as practicable but not later 
than the start of the next grazing year. We made this change in 
recognition that legal proceedings can at times delay or halt 
implementation of actions deemed appropriate by BLM.
    We also removed the phrase ``Category 1 or 2'' with respect to the 
designation of special status to candidate threatened and endangered 
(T&E) species because the FWS no longer uses these designations.
    As in section 4180.1, in this section also we have removed 
references to ``at-risk'' species in the final rule.
    Finally, we made changes in paragraph (c) that better reflect field 
practice. Both Sec.  4180.2(c)(1)(i) and (c)(2), as proposed, 
erroneously implied that an agreement or a grazing decision are 
mutually exclusive. However, we often reach agreement and then issue a 
final decision to implement the agreement to ensure administrative 
finality. On the other hand, some field managers are comfortable with 
just an agreement and do not necessarily want to follow up with a 
decision. Such agreements, when they occur, must be signed by the 
interested public, in addition to the permittee/lessee. Also, at times, 
state agencies are signatory parties to agreements as well.
    A number of comments supported the proposed rule provision that BLM 
will use a combination of monitoring and assessment information to 
determine whether existing grazing management practices or levels of 
grazing use on public land are significant factors in failing to 
achieve standards. The comments stated that the monitoring and 
assessment requirement would lead to BLM having more defensible data to 
support decisions, supply data from more than one point in time, ensure 
that partnerships are producing desired results, foster stable range 
condition and upward trend while maintaining custom and culture of the 
West, and enhance efforts to protect the health of the land. Supportive 
comments also referred to increasing credibility of determinations by 
using quantitative data to support qualitative observations and 
reducing the subjectivity involved in making a determination that leads 
to changing terms and conditions in grazing permits.
    The use of existing or new monitoring data to identify what factors 
significantly contribute to not meeting standards or to conform to 
guidelines and to support determinations regarding such failure will 
focus and better inform the subsequent actions that BLM takes to 
improve rangeland health as compared with actions taken based solely on 
assessments. When monitoring data is used to identify livestock grazing 
as a significant contributing factor, the range management actions 
taken will be more effective and less vulnerable to appeal. The rule 
thus would result in expediting actions to improve rangeland health.
    Some comments contained suggestions for implementing the rule. Many 
encouraged BLM to provide sufficient funding to collect the monitoring 
data needed under the rule, and one comment requested a funding 
strategy to show how BLM will provide the resources to complete the 
monitoring necessary to implement this rule. One comment suggested that 
permittees fund any monitoring above that currently required by BLM to 
make decisions. Some comments suggested priority-setting strategies so 
that high priority areas receive first consideration for monitoring.
    Priority setting is also a policy issue addressed during the annual 
budget development along with determinations on appropriate funding 
levels. Funding sources and amounts for monitoring vary from year to 
year, and BLM plans to work with permittees and others to determine how 
data collection will be accomplished on high priority areas within the 
allocated budget amounts. The budgetary effects of the monitoring 
requirement in proposed section 4180.2(c) will be mitigated by the 
amendment in the final rule that limits the need to use existing or new 
monitoring data to those cases where a standards assessment indicates 
that the rangeland is failing to achieve standards or that management 
practices do not conform to guidelines.
    Several comments expressed a desire for BLM to update policy and 
handbooks to clarify methods and levels of monitoring needed so that 
there would be consistency in data collection and interpretation. One 
comment requested incorporation of ``the Catlin et al. 2003 report and 
statistical tests (Grand Staircase/Escalante National Monument)'' into 
the EIS because the report and statistical tests provide tools to 
assist BLM staff in making rangeland health determinations. Comments 
offered monitoring indicators for all the land health standards, and 
suggested that monitoring should be focused on goals and objectives 
agreed upon using consultation, cooperation, and

[[Page 39495]]

coordination. It was recommended that monitoring should be conducted by 
qualified professional agency personnel working with permittees using 
approved agency methods to collect data relevant to the decisions being 
made.
    BLM agrees that clear guidance on monitoring methodologies is 
desirable. Many of the suggestions are more appropriately addressed in 
the development of policy, handbooks, and technical references, rather 
than in regulations. This applies particularly to techniques and 
methods for collecting and interpreting data, which may be subject to 
modification as new findings are announced in the scientific 
literature. The suggestion to update policy and handbooks is 
appropriate, and BLM plans to do so. We anticipate that we will 
consider the information in the Catlin report as we develop and update 
guidance. In the meantime, BLM follows monitoring guidance at Manual 
Section 1734, and Manual Handbooks 1734-1 and 4180-1. BLM also monitors 
the status of objectives from land use plans and activity plans, and 
considers this monitoring information in evaluating land health 
standards. BLM receives and considers other data and information 
provided by affected permittees and others, to the extent practical, 
during the development of evaluation reports. These reports include 
evaluations of land health standards, evaluations of land use plan and 
activity plan objectives, and biological evaluations relating to 
consultation under Section 7 of the Endangered Species Act.
    One comment suggested that BLM should add the following wording to 
section 4180.2(c)(2): ``If the appropriate action requires a change in 
active use, such change will be implemented in accordance with section 
4110.3-3'' to clarify that timing conflicts are not intended between 
the implementation requirements of this section and those of section 
4110.3-3 on implementing changes in active use under the changes 
recommended herein.
    The regulations state in section 4180.2(c)(3), ``Appropriate action 
means implementing actions pursuant to subparts 4110, 4120, 4130, and 
4160 of this part * * *''. How changes in preference and active use 
will occur is specified in section 4110.3-3, so we believe the 
suggested word change to section 4180.2 is unnecessary.
    Some comments stated that the regulations in section 4180.2 should 
provide for individual allotment management plans with specific goals 
and objectives, and including monitoring plans, to be developed through 
consultation, cooperation, and coordination.
    Section 4120.2, on allotment management plans, directs that such 
plans provide for monitoring to evaluate the effectiveness of 
management actions in achieving the resource objectives of the plan. 
These plans are to be developed in consultation, cooperation, and 
coordination with permittees, landowners, other agencies, and the 
interested public. Therefore, we believe the suggestion has already 
been addressed in the regulations.
    A variety of comments opposed requiring both monitoring and 
assessments to make determinations that rangeland health standards are 
not being met because of current livestock grazing management. Most 
were concerned that BLM did not have the budgetary resources to provide 
adequate data collection and analysis and that the requirement would 
impose an unrealistic workload on the BLM staff, putting resources at 
risk by delaying appropriate actions. Setting priorities and assuring 
that low priority areas were not monitored at the expense of high 
priority areas was a concern.
    As previously stated, BLM prioritizes expenditure of resources for 
monitoring as well as for other activities in the range program. For 
example, BLM assigns high monitoring priority to areas it believes to 
be at risk, are in degraded condition, or in downward trend and in 
danger of losing capability. BLM believes that it is more effective to 
expend resources to collect data in these high priority areas, and to 
use that data to ensure sustainable decisions from a resource and 
implementation perspective. Under the rule, monitoring would not be 
necessary on every allotment. The final rule requires that existing or 
new monitoring data be used to identify significant contributing 
factors and support determinations regarding the same only on those 
allotments that standards assessment indicates are failing to meet 
standards or conform to guidelines. This will ensure that subsequent 
corrective action is focused on remedying the factors that monitoring 
has verified are contributing to not achieving standards or not 
conforming to applicable guidelines.
    BLM currently administers grazing on about 21,535 allotments 
(2005). We have established monitoring sites in nearly 11,500 
allotments, and currently collect monitoring data to some degree on 
about 3,500 of those allotments each year. BLM uses these monitoring 
sites primarily to evaluate achievement of land use plan objectives, to 
ascertain changes in condition, and to determine trend. Information is 
collected at some of the monitoring sites more often than at others, 
depending on priority and purpose.
    As of the end of Fiscal Year 2002, about 16 percent of 7,437 
allotments evaluated by that time (1,213 allotments) were determined 
not to be meeting land health standards because of existing livestock 
grazing management. We focused our first round of assessments on areas 
with potential problems. Field offices were directed beginning in 1998 
to prioritize allotments, watersheds, or other areas and ``to give 
highest priority to areas believed to be at risk--in degraded condition 
or downward trend and in danger of losing potential.'' (Washington 
Office Instruction Memorandum 98-91) Additional guidance for assessing 
high priority areas was provided in Manual Handbook 4180-1 and annual 
work plan directives since fiscal year 2001. This experience should be 
a good indicator of the proportion of allotments that are likely to 
fail to meet standards as a result of livestock grazing practices in 
the future. Thus, extrapolating from our experience leading up to the 
end of FY 2002, we expect to need monitoring data to support less than 
16 percent of our determinations that we make after August 11, 2006. 
Under projected budgets, we fully expect to have appropriate monitoring 
data to support our determinations, regardless of whether they lead to 
a finding of failure to meet standards due to livestock grazing.
    Other comments expressed opinions that monitoring was unnecessary 
and existing direction was adequate for making determinations and 
necessary adjustments, including flexibility to use existing data, that 
using follow-up monitoring to determine if the change was needed is an 
appropriate strategy, and that allowing immediate action when 
destructive grazing practices and abuse are obvious is essential to 
good management. One comment stated that requiring monitoring would 
lead to increased litigation.
    Once a standards assessment indicates that the rangeland is failing 
to achieve standards or that management practices do not conform to 
guidelines, the level of new monitoring, if any, needed to determine 
what are the significant contributing factors in failing to achieve 
standards or conform to guidelines will vary depending on such 
variables as how obvious the causes are for not meeting standards, the 
quantity and quality of existing relevant monitoring data, presence of 
threatened or endangered species, conflicts between uses, and other 
criteria. While BLM cannot control the number of

[[Page 39496]]

appeals or the amount of litigation after issuing a grazing decision, 
we believe having a defensible basis for the decision will reduce the 
number of instances where appropriate action is delayed because of 
protracted administrative and judicial processes.
    One comment, supporting the adoption of a comprehensive monitoring 
strategy to chronicle the effect of grazing on rangeland health and 
Federal trust species found on allotments, stated that rangeland health 
determinations are the first step in identifying a need, if any, for 
changes in livestock management to improve rangeland health conditions 
and to ensure the sustainability of fish and wildlife resources. Until 
such a determination is made, according to the comment, only limited 
management actions can be initiated, and under current management, 
again according to the comment, there are no specific requirements on 
how to make these determinations.
    While the comment generally supports the provisions on monitoring 
in the proposed rule, it does not entirely accurately depict the 
situation regarding rangeland health determinations. There is no 
specific regulatory requirement that we must wait for a determination 
before we can take an action. However, although the regulations do not 
absolutely require a determination before BLM can take action, as a 
matter of practicality and workload prioritization, we find the 
determination process a useful tool. The comment also errs somewhat in 
stating that there are no specific requirements on how these 
determinations are made. It is true that there are no specific 
requirements in the regulations. However, guidance for making 
determinations appears in Manual Handbook H-4180-1.
    Some comments stated that experience shows that monitoring of 
rangeland standards is not being completed in a timely, effective 
manner under current requirements due to BLM funding and staffing 
limitations, and recommended BLM remove this requirement from the rule. 
The comments suggested an alternative evaluation process, where an 
interagency (and interdisciplinary) team evaluates range conditions and 
determines management strategies in cases where adequate monitoring 
data are not available. A few comments supported a comprehensive 
monitoring strategy to chronicle the influence of grazing on rangeland 
health and federally-listed species.
    BLM believes that monitoring is an important component of 
evaluating land health and making rangeland health standard 
determinations. The final rule will enable the authorized officer to 
have a solid factual basis for making decisions to adjust grazing use, 
and could reduce the number of instances where implementation is 
delayed because of protracted administrative appeal and judicial 
processes. The proposed rule would help focus BLM budgetary and 
staffing resources on monitoring where data are needed to determine the 
reasons for not meeting the land health standard(s). Under BLM 
procedures, interdisciplinary teams use existing monitoring data in the 
evaluation process to determine status of the current conditions 
relative to the land health standards. Where adequate monitoring 
information is not already available, BLM will focus its monitoring 
resources on gathering the needed information. The alternative 
evaluation process suggested in the comments closely mirrors the 
current process where existing monitoring data are not available. We 
believe that decisions will be implemented more efficiently on the 
ground when they are based on monitoring data, and may be less likely 
to be subjected to administrative or judicial challenge.
    Another comment maintained that range monitoring as practiced by 
BLM consistently under-reports biological impacts of cattle grazing on 
desert environments, particularly riparian areas, and that some 
monitoring methods do not report loss of habitat function for wildlife, 
increased susceptibility of soils to erosion, invasion of exotic 
plants, or destruction of cryptobiotic crusts.
    BLM does not agree with this comment. Monitoring is designed to 
document conditions of a particular attribute or set of attributes at 
the time data is collected. BLM uses a number of techniques and methods 
to measure wildlife habitat conditions (including cover, structure, and 
vegetation composition), ground cover, and presence of exotic plants. 
We rely on many BLM Technical References and Technical Notes, including 
TR 1734-4 ``Sampling Vegetation Attributes,'' 1996; TN-349 
``Terrestrial Wildlife Inventories: Some Methods and Concepts,'' 1981; 
``Inventory & Monitoring of Wildlife Habitat,'' 1986, by Cooperider, 
Boyd, and Hansan; TN 395 ``Evaluation of Bighorn Habitat: A Landscape 
Approach,'' 1996; TR 1730-1 ``Measuring and Monitoring Plant 
Population,'' 1998; and TN 417 ``Identifying and Linking Multiple Scale 
Vegetation Components for Conserving Wildlife Species that Depend on 
Big Sagebrush Habitat: A case Example--Southeast Oregon,'' 2004. This 
monitoring provides BLM with information about the condition and trend 
in condition of resources. When monitoring the effects of livestock 
use, BLM commonly measures utilization, cover, and frequency of use, 
and relies on actual use reports and photographs. BLM then correlates 
data to various management activities to determine effectiveness of 
management in achieving objectives.
    One comment stated that requiring monitoring before a rangeland 
health determination is made has implications for measures needed to 
conserve special status species in order to preclude listing. It stated 
that where proactive range-wide measures are needed, such as in the 
case of the sage-grouse, a requirement for monitoring before a remedial 
action can be initiated may amount to an inadequate regulatory 
mechanism. The comment recommended assessment and disclosure of the 
impacts of the monitoring requirement on BLM's ability to implement 
effective and timely conservation strategies to avoid the need to list 
special status species.
    Requiring monitoring data to make a determination of the cause for 
not achieving a land health standard does not preclude BLM from 
modifying grazing use to meet other resource management objectives. 
Section 4130.3-3 provides that BLM may modify terms and conditions of a 
permit or lease either with or without a determination under subpart 
4180. Subpart 4180 is not the sole regulatory mechanism for 
implementing measures that are needed to conserve special status 
species. Therefore, this regulatory change does not impair BLM's 
ability to take timely action to implement effective conservation 
strategies that preclude the need to list special status species.
    Several comments recommended that the rule should allow BLM to use 
monitoring or assessment data or both for making determinations, as 
provided in Alternative 3 in the EIS. The comment stated that this 
flexibility would enhance efforts to protect rangeland health. A 
related comment stated that BLM should not unnecessarily place the 
burden of proof on itself to justify management changes by requiring 
years of monitoring data before management changes can be required.
    We have not adopted this suggestion in the final rule. BLM believes 
that if determinations regarding the cause for not meeting one or more 
standards are supported by existing or new monitoring data, they are 
less likely to be challenged administratively or judicially. We believe 
that devoting

[[Page 39497]]

attention to areas with highest priority will allow us to address range 
health issues. In fact, at the end of Fiscal Year 2002, about 16 
percent of the 7,437 allotments that had been evaluated were determined 
not to be achieving standards because of existing livestock grazing 
management. This indicates that monitoring should be focused on high 
priority areas where there is a risk of not achieving land health 
standards because of existing livestock grazing. The final rule does 
add a provision to section 4180.2(c) that limits the monitoring 
requirement to those cases where a standards assessment indicates that 
the rangeland is failing to achieve standards or that management 
practices do not conform to guidelines. In such cases, we will use 
existing or new monitoring data to identify and support a determination 
regarding the significant factors that contribute to the failure to 
achieve standards. The final rule only requires the use of monitoring 
data to determine causation in cases where assessment indicates that 
rangelands are failing to achieve the standards or conform to the 
guidelines. For the most part, BLM has been focusing its monitoring 
efforts on those allotments where there are concerns or problems. We 
believe that this requirement is reasonable and necessary to ensure 
that we have adequate data to formulate and analyze an appropriate 
action where we find that existing grazing management practices or 
levels of grazing use on public lands are significant factors in 
failing to achieve the standards and conform with the guidelines. 
Further, as we have stated, determinations that are supported by 
monitoring will make for better, more defensible decisions, especially 
when we need to change grazing practices on allotments. BLM is adding 
the requirement to use standards assessments and existing or new 
monitoring data to support determinations of failure to achieve 
standards and conform to guidelines because of existing grazing 
management practices or levels of grazing use because both the public 
and the livestock industry are concerned about a lack of adequate data 
for making determinations. Although we often make these determinations 
based on existing monitoring data, adding this requirement provides for 
a consistent approach to making determinations.
    We do not expect this provision to have significant budgetary 
effects because, as described in section 4.3.1 of the EIS, only 16 
percent of the allotments assessed over the last 5 years have failed 
standards because of existing livestock grazing practices. While this 
requirement may increase the ongoing data collection workload in the 
grazing program, we expect to continue to monitor in those areas we 
believe to be at risk, in degraded condition, or in downward trend and 
in danger of losing capability, within our funding allocation without 
needing additional funding. Further, the change in the final rule 
limiting the monitoring requirement to cases where standards 
assessments indicate rangeland failure to achieve standards or 
management failure to conform to guidelines should reduce the workload 
and budgetary effects of the final rule. Refocusing data collection 
priorities may affect watershed assessment schedules and could delay 
the permit renewal process in areas where relevant monitoring data is 
not available. Under projected budgets we expect to have appropriate 
monitoring data to support our determinations. The amount of monitoring 
data needed is likely to vary from case to case. We will continue to 
refine, as necessary, our guidance on monitoring to clarify such issues 
as timing and levels of monitoring.
    A comment asserted that BLM does not have the monitoring data to 
show that their management practices are having any effect on 
improvement of water quality on public lands.
    One of BLM's primary resource management objectives is to meet 
state water quality standards in water bodies affected by management 
activities on public lands. Achievement of state water quality 
standards is a rangeland health standard in each BLM region or state. 
BLM determines total maximum daily loads of pollutants and develops 
best management practices (BMPs), with coordination with and approval 
by each state's environmental quality office. We conduct water quality 
monitoring to assess the effectiveness of BMPs, as well as direct water 
column sampling to determine compliance with standards in cooperation 
with the appropriate state agencies. Streams and lakes are not removed 
from the states' lists of impaired water bodies without full 
verification and direct sampling data. Monitoring to determine the 
effectiveness of each change in management is not possible, but 
priority watersheds with existing water quality problems are monitored 
sufficiently to determine whether new management practices designed to 
improve water quality are effective.
    Many comments supported the amendments of this section in the 
proposed rule to allow BLM 24 months after determining that grazing 
management practices or levels of use were significant factors in 
failing to meet standards or conform to guidelines to formulate, 
propose, and analyze appropriate action. They stated that providing 
adequate time to develop and analyze appropriate actions with adequate 
public and permittee involvement would result in better decisions 
appropriate to the need. They said that the longer time frames would 
allow a more accurate evaluation, and allowing 24 months instead of 12 
months for initiating changing in grazing practices is more practical. 
BLM agrees and has not changed any of the pertinent provisions of the 
regulations in the final rule.
    Another comment stated that the purpose of extending the time to 
take appropriate action is to allow BLM staff time to bring together 
the appropriate information and conduct necessary public involvement. 
The comment encouraged BLM to retain opportunities for public 
involvement. However, the comment stated, in this connection, that a 
timely response to changing resource conditions overrides this need.
    The comment also suggested that the proposed rule be clarified, 
stating that some of the terms were confusing and made it difficult to 
determine the effect of the extended deadline on the viability of 
species. The comment stated that the wording ``to take action'' does 
not indicate whether the deadline of 2 years requires action to be 
``initiated'' or ``completed'' by that date. The comment asked for a 
more thorough discussion in the FEIS describing the delays that may 
result with adoption of the 2-year deadline, and the potential effects 
on listed resources.
    The comment is correct that the reason for extending the time 
allowed to initiate action is to allow BLM staff time to bring together 
the appropriate information and conduct necessary public involvement. 
This provision would enable BLM to develop a thorough action plan, 
consult with the FWS or the NMFS, and to solidify the decision to work 
through the NEPA process, which involves the public. The proposed rule 
would require an authorized officer to issue a final decision or 
execute an agreement to implement appropriate action within 24 months 
of a determination made under section 4180.2(c). The requirement to 
take action within 2 years means that appropriate action would need to 
be initiated via a final decision or agreement on or before that time, 
but not necessarily completed on or before that time.
    Taking up to 24 months to develop a meaningful action and issue a 
decision less vulnerable to appeal will be more effective than issuing 
a decision and

[[Page 39498]]

waiting even longer for an appeal to IBLA to be heard and resolved.
    Under the rule, the BLM field manager has discretion whether to 
allow 24 months for BLM to address failure to meet rangeland health 
standards. There is no language in the rule that precludes a shorter 
deadline, once BLM meets its consultation, cooperation, and 
coordination requirements. Allowing 24 months to develop appropriate 
action should improve the likelihood of determining the correct remedy 
for a vegetative resource problem. Also, if immediate action is needed 
to protect soil, vegetation, or other resources, BLM may invoke section 
4110.3-3(b) and immediately close the area to grazing either totally or 
partially.
    Those who made comments opposing the change in the amount of time 
to develop an appropriate action when livestock grazing was determined 
to be a significant factor in not achieving a land health standard 
focused on 3 areas. The first was that the extra time allowed is 
inconsistent with the objective of accelerating restoration and 
improving public rangelands and that it would create a delay leading to 
additional degradation of resources or harm to fish and wildlife, and 
detrimental to long-term range health. The second was that current 
rules provided adequate time to take action, and that a ruling of the 
9th Circuit Court of Appeals upholding the current regulations should 
be continued as a management directive. The third area of focus was 
that the change would provide preferential treatment not given to other 
permitted uses.
    With respect to the first concern, BLM believes that allowing up to 
24 months (except in those cases where legally required processes that 
are the responsibility of another agency require additional time) to 
propose and analyze appropriate action needed to address the failure to 
meet a rangeland health standard will result in improvements rather 
than harm to resources, including wildlife. As stated in section 4.3.7 
of the EIS, there may be limited short term adverse impacts if BLM 
needs 24 months or more to develop an appropriate action that involves 
extensive coordination and consultation. However, we expect the extra 
time taken to develop a meaningful action to provide greater long term 
benefits to other resources and an overall improvement in rangeland 
condition. For example, just reducing the level of use in a riparian 
area, rather than developing a management system that considers timing 
of use, is not likely to improve the riparian area condition. Taking 
the additional time to develop an appropriate action may actually 
reduce the amount of time taken to implement a decision, particularly 
if the decision is not appealed. Also, taking additional time should 
improve the quality of the BLM decisions and reduce the likelihood of 
successful appeal, and hopefully the number of appeals. Implementing 
decisions can be delayed by 18 to 36 months if they are appealed. At 
the end of FY2002, about 5 percent of grazing decisions issued after 
1997 had been appealed. Labor and funds spent to address these appeals 
are diverted from developing and implementing workable plans. In many 
cases, the full 24 months may not be needed to develop appropriate 
actions. Based on determinations made through the end of Fiscal Year 
2002, the number of allotments affected by this rule appears to be 
fairly limited. Of the 7,437 allotments (out of 21,535) assessed prior 
to October 1, 2002, BLM determined that 16 percent did not meet 
standards with at least one of the significant causal factors 
identified as existing livestock grazing management or levels of use. 
Of the 10,455 allotments assessed from 1998 through 2005, existing 
livestock grazing or levels of use were determined to be a significant 
causal factor for not meeting standards on about 15%, or 1537 allotments.
    Regarding the second area of concern, BLM has determined that the 
additional time is needed to enable us to develop and implement better 
action strategies. We assume the ruling noted in the comments is Idaho 
Watersheds Project v. Hahn, 187 F.3d 1035 (9th Cir. 1999). In the 
proceedings that led up to that appellate decision, the district court 
provided a schedule for completing evaluations of land health standards 
and NEPA documents for 68 allotments, and issued interim management 
guidelines pending completion of the NEPA documents and issuing grazing 
permits. The decision referred to interprets the current regulations, 
the effects of which are analyzed as part of the No Action Alternative 
in the EIS. The final rule gives managers and partners an opportunity 
to develop, as a result of the additional time, better alternatives 
that will result in more positive long-term environmental effects. The 
fact that the 9th Circuit upheld the current regulations does not 
preclude BLM from proposing to amend the regulations to improve our 
grazing management program. BLM's experience implementing the existing 
regulations is that the regulatory requirement to take appropriate 
action no later than the start of the next grazing season did not 
always provide sufficient time to ensure compliance with relevant laws 
and regulations, including requirements in the grazing regulations to 
undertake consultation and coordination to develop an appropriate 
action, NEPA, and, if applicable, ESA consultation.
    The proposed rule does not change BLM's discretion to implement 
decisions to adjust grazing use immediately if continued grazing use 
poses an imminent likelihood of significant soil, vegetation, or other 
resource damage, including immediate threats to listed or other 
sensitive species. The proposed rule also contains provisions that 
allow BLM and the permittee to enter into an agreement for shorter time 
frames for implementation (section 4110.3-3). The final rule provides 
sufficient time for BLM to comply with all applicable legal 
requirements, while protecting fish and wildlife resources.
    We do not agree that the changes in the regulations give 
preferential treatment to grazing interests by extending the allowable 
timeframe for developing and implementing corrective actions. Grazing 
permittees are the only users required by these regulations to change 
management in a specified period of time if that management is a 
significant factor for not achieving rangeland health standards. If 
other activities are determined to be the cause for not meeting those 
standards, these regulations do not impose deadlines on making changes 
in such activities, or even require changes in them.
    The comments provided suggestions for changing the proposed rule. 
One was to increase the time given to develop an appropriate action to 
more than 24 months, because climate, weather, or other conditions 
might require longer studies to determine rangeland health. Another was 
to provide for a variable time frame on a case by case basis, because 
different problems required varying time periods for initiating and 
scheduling improvements. A third suggestion was to identify problems 
associated with grazing practices within 3 to 6 months, and devise 
measures to correct them within 2 to 4 months after they are 
identified, including (a) planning an appropriate action with 
appropriate consultation and coordination, (b) completing NEPA and 
Section 7 ESA requirements, and (c) issuing a final decision to 
implement the action.
    We have revised the final rule to provide additional time to 
develop appropriate actions when legally required processes outside 
BLM's purview prevent completion of all legal obligations within the 24 
month time period. In most cases, 24 months is an

[[Page 39499]]

adequate period of time to develop appropriate action. Sometimes a 
corrective action is as simple as changing a grazing period or 
rotation. In other circumstances, corrective actions are more complex 
and difficult to conceive and implement, such as when multiple 
permittees in large allotments with multiple resource issues are 
involved. When the process includes numerous legal requirements, such 
as ESA Section 7 consultation, or extensive consultation and 
coordination with numerous interests, we may need additional time to 
complete the process. Developing appropriate action to implement 
remedial grazing management can vary greatly in complexity depending on 
the management circumstances of the allotment. In more complex 
circumstances, just developing the appropriate action(s) is often not 
straightforward. Time is needed for planning and budget considerations, 
such as developing and coordinating a workable proposal, engineering 
survey and design if range projects are a part of the corrective 
action, consulting with Tribes and complying with Section 106 of the 
National Historic Preservation Act (NHPA), NEPA analysis including 
consultation with multiple entities and agencies, and securing moneys 
to support these processes. In practice, when faced with more complex 
circumstances, the relatively short period allowed by the current 
regulation within which to devise and implement the appropriate 
action(s) may not allow BLM time for internal alignment of the planning 
and budget needed for timely implementation of the corrective action. 
Current resources available to BLM to assess rangeland conditions on 
160 million acres make it impractical for BLM to implement and maintain 
a program to identify problems associated with grazing within ``3-6 
months.'' In light of these operational realities, BLM cannot adopt 
recommendations to shorten this time frame. We have therefore not 
adopted these comments in the final rule.
    One comment expressed concern that the effect of allowing up to 24 
months to develop and analyze an action to make needed adjustments in 
grazing would be to protect poor stewards and uncooperative ranchers.
    The rule change is intended to provide adequate time ``to 
formulate, propose, and analyze actions in an environment of 
consultation, cooperation and coordination.'' Rather than protecting 
poor management, this rule provides opportunity to develop an 
appropriate action. BLM may still take appropriate action to modify 
livestock grazing management where changes are needed to achieve land 
health standards before the end of the 24-month period authorized in 
the regulations. We recognize that, in the case of an uncooperative 
rancher, it is unlikely that we would be able to obtain agreement 
regarding the necessary appropriate action, and if that was the case, 
the proposed change to grazing management would be implemented by a 
grazing decision under subpart 4160. BLM is responsible for initiating 
a change in management regardless of the cooperativeness of the 
permittees or lessees or their management abilities. Additionally, 
section 4110.3-3(b)(1) includes the phrase ``reasonable attempt to 
consult with'' to allow BLM to implement immediate actions to address 
resource conditions in situations where an entity is uncooperative.
    Some comments included requests to provide BLM State Directors 
authority to petition the Secretary for additions or changes to current 
land health standards, stating that providing this authority would 
allow BLM to modify standards based on current conditions or needs and 
desires of local working groups.
    The final regulations retain the provisions in section 4180.2(b) 
that give the State Director the responsibility and authority to 
develop or modify regional standards and guidelines, following 
consideration of RAC recommendations. The Secretary of the Interior 
must approve state or regional standards or guidelines developed by the 
State Director prior to implementing them.
    One comment urged BLM to find ways to reward ranchers who achieve 
100 percent compliance with the standards for rangeland health, and to 
manage permittees who fail to achieve compliance with the standards in 
order to improve conditions on public lands.
    The grazing regulations provide sufficient incentives for good 
stewardship. Successful rangeland management may enable ranchers to 
reap rewards in the form of sustainable levels of forage from year to 
year. Ranchers who have a demonstrated record of good stewardship may 
become eligible for additional forage if it becomes available, or may 
want to explore with BLM the possibility of developing an allotment 
management plan that potentially could result in greater operational 
flexibility. However, BLM will not abrogate its responsibility to 
manage public lands, regardless of whether grazing management practices 
conform with applicable guidelines and/or an allotment achieves all 
standards.
    Several comments suggested that BLM include a ``social and 
economic'' land health standard to demonstrate consistency with the 
proposed requirement that BLM consider relevant social, economic, and 
cultural effects in their NEPA analyses of the effects of changing 
levels of grazing use.
    We have not adopted this idea in the final rule. BLM believes that 
land health standards should focus on the biotic and physical 
components of the ecosystem, and that ``human dimension'' 
considerations are best dealt with in the NEPA analyses that we 
conduct. In order to ensure consistent disclosure and consideration of 
social and economic impacts, we have included requirements in section 
4110.3(c) to analyze and, if appropriate, document relevant social, 
economic, and cultural effects as required by NEPA before changing 
grazing preference.
    One comment stated that BLM grazing regulations should have 
provisions in subpart 4180 that ensure protection of rangelands from 
further degradation, improvement of water quality, and restoration of 
areas adversely affected by grazing.
    BLM, in consultation with RACs, has developed and approved regional 
standards for rangeland health and guidelines for grazing 
administration under section 4180.2 in all areas that BLM manages for 
livestock grazing, except for the California Desert District. In the 
California Desert District the fallback standards and guidelines in 
section 4180.2(f) currently apply. Section 4130.3-1(c) requires that 
permits and leases incorporate terms and conditions to require 
conformance to standards and guidelines. BLM believes that these 
standards and guidelines adequately provide for the protection of 
rangelands from degradation, improvement of water quality, and 
restoration of areas adversely affected by livestock grazing.
    One comment urged BLM to eliminate completely the use of the 
``rapid assessment'' or indicators of rangeland health (Tech. Ref. 
1734-6) in assessing rangeland condition, stating that this is nothing 
more than the old apparent-trend scorecard that the range management 
and scientific community abandoned 70 years ago as being too subjective.
    The authors of the 1994 National Research Council's (NRC) 
publication Rangeland Health: New Methods to Classify, Inventory, and 
Monitor Rangelands proposed an approach to assess rangeland health that 
uses integrity of soil and ecological process as measures of rangeland 
health (p. 95). They recommended the use of 3 criteria

[[Page 39500]]

upon which to base an evaluation of rangeland health: (1) Degree of 
soil stability and watershed function, (2) integrity of nutrient 
cycling and energy flow, and (3) presence of functioning recovery 
mechanisms (p. 97, 98). The report suggests a number of indicators that 
can be used to measure and assess rangeland health. The report also 
describes the use of indicators (soil and vegetation characteristics) 
that are used by the Natural Resources Conservation Service (NRCS--
formerly the Soil Conservation Service, SCS) to indicate apparent trend 
(USDA, SCS, 1976). The majority of indicators listed in Technical 
Reference (TR) 1734-6 (jointly developed by United States Geological 
Survey, NRCS, Agricultural Research Service and Bureau of Land 
Management, 2000) are those listed in the NRC publication. BLM 
recognizes that the process for assessing and interpreting indicators 
of rangeland health as described in TR 1734-6 is qualitative, but is 
extremely useful for providing an initial assessment of land health. 
This initial assessment can then be substantiated by collection of 
quantitative data through monitoring on those areas where concerns are 
identified (BLM Manual Handbook H-4180-1 Rangeland Health Standards, 
chapter III). BLM expects to continue to use the method described in TR 
1734-6, Interpreting Indicators of Rangeland Health, in conjunction 
with monitoring to make determinations of rangeland health and whether 
or not existing livestock grazing is a significant causal factor where 
land health standards are not achieved. We have made no change in the 
final rule in response to this comment.
    One comment requested that we restrict the fallback guideline in 
section 4180.2(f)(2)(x) to the use of native plants and eliminate the 
use of non-native plant species for rehabilitation or restoration 
projects. Another comment encouraged us to retain the use of non-native 
plants for restoration and rehabilitation projects under the conditions 
listed in the fallback guideline in section 4180.2(f)(2)(x).
    It is BLM policy to use native plant species in range improvement 
and other projects intended to re-establish vegetation where they are 
available and if we expect them to be effective. The current fallback 
guideline at section 4180.2 (f)(2)(x) recognizes that at times native 
plant materials are in short supply and in certain circumstances native 
plant species cannot compete with established exotic invasive species. 
Section 4180.2(d)(12) also continues to provide that state or 
regionally developed standards for rangeland health ``[i]ncorporat[e]
the use of non-native plant species only in those situations in which 
native species are not available in sufficient quantities or are 
incapable of maintaining or achieving properly functioning conditions 
and biological health.'' State or regionally-developed standards 
created under this regulation have recognized that, on some sites, 
native species are incapable of successfully competing with invasive 
exotics. Where this occurs, BLM uses non-natives in rehabilitation 
projects.
    One comment asserted that it may be misleading to state that most 
BLM states have completed establishment of standards. The comment went 
on to state that, in many of these states, the grazing industry 
controls state legislatures or has influence over them out of 
proportion to the contribution of the industry to the economy and to 
society, and that this brings into question the validity of state 
rangeland health standards. BLM should have ultimate responsibility for 
making this determination on lands entrusted to it by the public, the 
comment concluded, and these determinations should be made using 
techniques of rangeland science, by qualified individuals, either 
employed by or under contract to BLM.
    The comment misinterpreted what we meant by ``BLM states.'' BLM is 
organized into different administrative levels and boundaries. One of 
those levels is by state and at the state level there is a state 
office. Some of the administrative states actually include more than 
one state. For example, the Montana State Office includes the states of 
Montana, North Dakota and South Dakota. In the DEIS in Section 2.2.8, 
when we stated ``Most BLM States have completed establishment of 
standards and guidelines * * *,'' we were referring to the BLM 
administrative State Offices.
    BLM professionals, along with many of our interested publics, 
including but not limited to RACs, ranchers, and various organizations 
and individuals, were involved with the development of BLM's rangeland 
standard and guidelines. In most states, BLM coordinated or consulted 
with state agencies or the state Governor's Office during the 
development of land health standards, but not with state legislatures. 
All rangeland standards and guidelines are based on current rangeland 
science. BLM is responsible for implementing the standards and 
guidelines and determining the condition of the public rangelands that 
we administer.

VI. Procedural Matters

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget determined that this final rule 
is a significant regulatory action and therefore subject to review 
under Executive Order 12866. The final rule would not have an effect of 
$100 million or more on the economy. The regulatory changes would not 
adversely affect, in a material way, the economy, productivity, 
competition, jobs, the environment, public health or safety, or state, 
local, or Tribal governments or communities.
    The final rule would not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency. 
BLM is aware that there are differences between its grazing program and 
the program administered by the U.S. Forest Service (USFS). For 
example, USFS regulations and procedures do not include a temporary 
suspension category, unlike the BLM provision in section 4110.3-2. The 
regulations at 36 CFR 222.9(b)(2) provide that title to permanent 
structural range improvements on National Forest System lands such as 
pipelines and water troughs remains with the United States, unlike the 
BLM provision in section 4120.3-2 that allows for the sharing of the 
title to some improvements with permittees and lessees. The USFS 
regulations may provide for a more streamlined process to modify 
grazing permits, particularly in situations where grazing activities 
need to be restricted.
    Despite these and other differences, BLM believes that any 
inconsistencies between BLM's grazing program and that of the USFS are 
not serious and will not interfere with actions taken or planned by the 
agencies. They merely represent differences in management approach and 
philosophy.
    The final rule does not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients; nor does it raise novel legal issues. 
However, the rule raises novel policy issues by reversing or otherwise 
changing policy established in a 1995 final rule.

Regulatory Flexibility Act

    Congress enacted the Regulatory Flexibility Act (RFA) of 1980, as 
amended, 5 U.S.C. 601-612, to ensure that Government regulations do not 
unnecessarily or disproportionately burden small entities. The RFA 
requires a regulatory flexibility analysis if a rule would have a 
significant economic

[[Continued on page 39501]] 

 
 


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