#### § 2884.12 What are the fee categories for cost recovery?

(a) You must pay a cost recovery fee with the application to cover the costs to the Federal Government of processing your application before the Federal Government incurs them. These cost recovery fees are for the processing and monitoring activities associated with your grant. Subject to applicable laws and regulations, if your application will involve Federal agencies other than the BLM, your fee may also include the reasonable costs estimated to be incurred by those Federal agencies. Instead of paying the BLM a fee for the estimated work of other Federal agencies in processing your application, you may pay other Federal agencies directly for the costs estimated to be incurred by them. The cost recovery fees for Categories 1 through 4 (see [paragraph (b)](/on/2024-09-06/title-43/section-2884.12#p-2884.12(b)) of this section) are not refundable. The fees are categorized based on an estimate of the amount of time that the Federal Government will spend to process your application and monitor your grant.

(b) The BLM bases cost recovery fees on categories. The BLM will update the fee schedule for Categories 1 through 4 each calendar year, based on the previous year's change in the IPD-GDP, as measured second quarter to second quarter, rounded to the nearest dollar. The BLM will update Category 5 fees, which may include preliminary application review, processing, and monitoring, as specified in the applicable Master Agreement. Category 6 fees are for situations when a right-of-way activity will require more than 64 hours, or when an environmental impact statement (EIS) is required and may include preliminary application review costs. The cost recovery categories and the estimated range of Federal work hours for each category are:

Table 1 to Paragraph (b)—MLA Right-of-Way Cost Recovery Fee Categories

| MLA right-of-way cost recovery category descriptions | Federal work hours involved |
| --- | --- |
| *Category 1.* Processing and monitoring associated with an application or existing grant or TUP | Estimated Federal work hours are ≤8. |
| *Category 2.* Processing and monitoring associated with an application or existing grant or TUP | Estimated Federal work hours are >8 ≤24. |
| *Category 3.* Processing and monitoring associated with an application or existing grant or TUP | Estimated Federal work hours are >24 ≤40. |
| *Category 4.* Processing and monitoring associated with an application or existing grant or TUP | Estimated Federal work hours are >40 ≤64. |
| *Category 5.* Master Agreements | Varies, depending on the agreement. |
| *Category 6.* Processing and monitoring associated with an application or existing grant or TUP, including preliminary-application reviews.\* | Estimated Federal work hours are >64. |
| | |
| --- | --- |
| \* Preliminary application review costs are those expenses related to meetings held between a Federal agency and the applicant to discuss a right-of-way application. These reviews are not required but are encouraged. | |

(c) You may obtain a copy of the current cost recovery fee schedule at *<https://www.blm.gov>,* by contacting your local BLM state, district, or field office, or by writing: Attention to the Division of Lands, Realty and Cadastral Survey, U.S. Department of the Interior, Bureau of Land Management, 1849 C Street NW, Mail Stop 2134LM, Washington, DC 20240.

(d) After an initial review of your application, the BLM will notify you of the processing category into which your application fits. You must then submit the appropriate payment for that category before the BLM will begin processing your application. Your signature on a cost recovery Master Agreement constitutes your agreement with the cost recovery category decision. For reimbursement of the BLM's costs for Category 5 and 6 right-of-way applications or grants, see [§§ 2884.15](/on/2024-09-06/title-43/section-2884.15), [2884.16](/on/2024-09-06/title-43/section-2884.16), and [2884.17](/on/2024-09-06/title-43/section-2884.17). If you disagree with the category that the BLM has determined for your application, you may appeal the decision under [§ 2881.10](/on/2024-09-06/title-43/section-2881.10). If you paid the cost recovery fee and you appeal a Category 1 through 4 determination, the BLM will work on your application, grant, or TUP while the appeal is pending. If IBLA finds in your favor, you will receive a refund or adjustment of your cost recovery fee.

(e) In processing your application, the BLM may determine at any time that the application requires preparing an EIS. If this occurs, the BLM will send you a decision changing your cost recovery category to Category 6. You may appeal the decision under [§ 2881.10](/on/2024-09-06/title-43/section-2881.10).

(f) If you hold an authorization relating to TAPS, the BLM will send you a written statement seeking reimbursement of actual costs within 60 calendar days after the close of each quarter. Quarters end on the last day of March, June, September, and December. In processing applications and administering authorizations relating to TAPS, the Department of the Interior will avoid unnecessary employment of personnel and needless expenditure of funds.

[[89 FR 25973](https://www.federalregister.gov/citation/89-FR-25973), Apr. 12, 2024]