#### § 2804.14 What are the fee categories for cost recovery?

(a) Unless your fees are waived under [§ 2804.16](/on/2024-09-06/title-43/section-2804.16), you must pay cost recovery fees for the reasonable costs associated with your application and grant. Subject to applicable laws and regulations, if your application involves 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 reasonable costs incurred by other Federal agencies in processing your application, you may pay other Federal agencies directly. The fees for Categories 1 through 4 (see [paragraph (b)](/on/2024-09-06/title-43/section-2804.14#p-2804.14(b)) of this section) are one-time fees and are not refundable. Reasonable costs are those costs defined in Section 304(b) of FLPMA ([43 U.S.C. 1734(b)](https://www.govinfo.gov/link/uscode/43/1734)). The fees are categorized based on an estimate of the amount of time that the Federal Government will expend to process your application, issue a decision granting or denying the application, and monitor that land use authorization.

(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)—Cost Recovery Categories

| FLPMA right-of-way cost recovery category descriptions | Federal work hours involved |
| --- | --- |
| *Category 1.* Processing and monitoring associated with an application or existing grant | Estimated Federal work hours are ≤8. |
| *Category 2.* Processing and monitoring associated with an application or existing grant | Estimated Federal work hours are >8 ≤24. |
| *Category 3.* Processing and monitoring associated with an application or existing grant | Estimated Federal work hours are >24 ≤40. |
| *Category 4.* Processing and monitoring associated with an application or existing grant | 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, 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 required only when an application is for a wind or solar right-of-way but are encouraged for other right-of-way application filings. A Master Agreement may include preliminary application review costs. | |

(c) You may obtain a copy of the current year's 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, Director (HQ-350), 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 cost recovery category into which your application fits. You must then submit to the BLM 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. If you disagree with the category that the BLM has determined for your application, you may appeal the decision under [§ 2801.10](/on/2024-09-06/title-43/section-2801.10). For Category 5 and 6 applications or grants, see [§§ 2804.17](/on/2024-09-06/title-43/section-2804.17), [2804.18](/on/2024-09-06/title-43/section-2804.18), and [2804.19](/on/2024-09-06/title-43/section-2804.19). If you paid the cost recovery fee and you appeal a Category 1 through 4 or Category 6 determination, the BLM will work on your application or grant while the appeal is pending. If the Interior Board of Land Appeals (IBLA) finds in your favor, you will receive a refund or an 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 this decision under [§ 2801.10](/on/2024-09-06/title-43/section-2801.10).

(f) To expedite processing of your application, you may notify the BLM in writing that you are waiving application of the factors identified in [§§ 2804.20(a)](/on/2024-09-06/title-43/section-2804.20#p-2804.20(a)) and [2804.21](/on/2024-09-06/title-43/section-2804.21) to determine reasonable costs and are electing to pay the actual costs incurred by the BLM in processing your application and monitoring your grant.

[[89 FR 25959](https://www.federalregister.gov/citation/89-FR-25959), Apr. 12, 2024]