`[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Pages 28511-28520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13161]



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DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service

7 CFR Chapter VI and Part 620

RIN 0578-AA15


Wetlands Reserve Program

AGENCY: Natural Resources Conservation Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: Title XIV of the Food Agriculture, Conservation, and Trade Act 
of 1990 (the 1990 Act), enacted on November 28, 1990, amended the Food 
Security Act of 1985 to provide for the establishment of the Wetlands 
Reserve Program (WRP). Under the WRP, the secretary of Agriculture is 
authorized to purchase easements from owners of eligible land who 
voluntarily agree to restore and protect farmed wetlands or converted 
wetlands and eligible adjacent acres. The Department of Agriculture 
Reorganization Act of 1994, authorized the establishment of the Natural 
Resources Conservation service (NRCS) and transferred responsibility 
for the WRP from the Consolidated Farm Service Agency to the NRCS, 
formerly the Soil Conservation Service (SCS). This interim rule 
provides the process by which the WRP will be administered within the 
NRCS. This rule also amends 7 CFR Chapter VI to reflect the 
establishment of the NRCS and the abolishment of the SCS.

DATES: Effective date: June 1, 1995.
    Comments should be received on or before July 31, 1995.

ADDRESSES: Comments should be sent to National Wetlands Team, Natural 
Resources Conservation Service, Cotton Annex, Mezzanine One, Post 
Office Box 2890, Washington, DC 20013.

[[Page 28512]] FOR FURTHER INFORMATION CONTACT:
Bob Misso (202) 720-3534.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
interim rule is significant.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because the NRCS is not required by 5 U.S.C. 
553 or any other provision of law to publish a notice of proposed 
rulemaking with respect to the subject matter of this rule.

Environmental Evaluation

    It has been determined through an environmental review that this 
action is a modification of the existing WRP and is covered under the 
NRCS 1990 Environmental Assessment entitled, ``Wetlands Reserve 
Program-Environmental Assessment: Wetlands Reserve Provision of the 
Conservation Program Improvements Act of 1990.'' Copies of the 
environmental assessment are available upon request from: Bob Misso, 
Program Manager, National Wetlands Team, Natural Resources Conservation 
Service, Mezzanine One, Cotton Annex, Post Office Box 2890, Washington, 
DC 20250.

Executive Order 12372

    This program/activity is not subject to the provisions of Executive 
Order 12372 because it involves direct payments to individuals and not 
to State and local officials. See notice related to 7 CFR Part 3015, 
Subpart V, published at 48 FR 29115 (June 24, 1983).

Federal Domestic Assistance Program

    The title and number of the Federal Domestic Assistance Program, as 
found in the Catalog of Federal Domestic Assistance, to which this rule 
applies are: Wetlands Reserve Program--10.072.

Paperwork Reduction Act

    The information collection requirements contained in this interim 
rule will be submitted to the Office of Management and Budget (OMB) for 
review under the Paperwork Reduction Act of 1980.

Executive Order 12778

    This interim rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this interim rule are not retroactive. 
Furthermore, except as provided at 16 U.S.C. 3837a(e)(2), the 
provisions of this interim rule preempt State and local laws to the 
extent such laws are inconsistent with this interim rule. Before an 
action may be brought in a Federal court of competent jurisdiction, the 
administrative appeal rights afforded persons at 7 CFR Part 614 must be 
exhausted.
Unfunded Mandates Reform Act of 1995

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995, 
which the President signed into law on March 22, 1995, the affects of 
this rulemaking action on State, local, and tribal governments, and the 
public have been assessed. This action does not compel the expenditure 
of $100 million or more by any State, local or tribal governments, or 
anyone in the private sector, and therefore a statement under section 
202 of the Unfunded Mandates Reform act of 1995 is not required.

Discussion of Program

    Under the WRP, the Natural Resources Conservation Service (NRCS) 
will purchase easements from persons voluntarily agreeing to allow for 
the restoration of farmed or converted wetlands. The 1990 Act (16 
U.S.C. 3837 et seq.) created an umbrella program called the 
Agricultural Resource Conservation Program which includes the 
Environmental Conservation Acreage Reserve Program. The Environmental 
Conservation Acreage Reserve Program includes the Conservation Reserve 
Program (CRP) and the WRP.
    The current regulations implementing the WRP were published by the 
Consolidated Farm Service Agency as a final rule on November 23, 1994 
(59 FR 60297) and are codified at 7 CFR Part 703. This rule establishes 
a new part (7 CFR part 620) for WRP, and pursuant to the Department of 
Agriculture Reorganization Act of 1994, Public Law 103-354, the NRCS 
assumes responsibility for administrating the WRP. Funds will be 
allocated based on landowner interest, amount of restorable wetland 
acres, environmental benefits, cost of acquisition and restoration, and 
other factors as determined by the Chief, NRCS, in consultation with 
the U.S. Fish and Wildlife Service.
    Section 3837 of Title 16, United States Code, specifies that 
eligible land will include farmed or converted wetlands, but not 
wetlands converted after December 23, 1985, together with adjacent 
lands on which the wetlands are functionally dependent so long as the 
likelihood of successful restoration of such land and the wetland 
values merit inclusion in the program taking into account the cost of 
restoring the wetlands. NRCS is also permitted to include in the 
program: (1) farmed or converted wetlands and adjoining lands that are 
enrolled in the CRP with the highest wetland functions and values and 
that are likely to return to production at the end of the CRP contract; 
(2) other wetlands that would not otherwise be eligible if it is 
determined that inclusion in the program would significantly add to the 
value of the easement; and (3) riparian areas that link wetlands that 
are protected by easements or by some other device or circumstance that 
achieves the same purpose as an easement.
    The NRCS shall not enroll lands that: (1) are converted wetlands if 
the conversion was commenced after December 23, 1985, (2) contain 
timber stands established under a CRP contract, (3) are owned by an 
agency of the United States, (4) are subject to a deed restriction of 
30 years or more prohibiting the production of agricultural 
commodities, or (5) are subject to on-site or off-site conditions that 
preclude successful long term restoration.
    With respect to owner eligibility, 16 U.S.C. 3837e provides that no 
WRP easement shall be created on land that has changed ownership in the 
preceding 12 months unless: (1) the new ownership was acquired by will 
or succession as a result of the death of the previous owner; or, (2) 
the Secretary determines that the land was acquired under circumstances 
that give adequate assurances that such land was not acquired for the 
purpose of placing it in the WRP.
    In return for participation in the program, a landowner will 
receive financial compensation from the NRCS for the easement itself, 
and the NRCS will bear all or a portion of the cost of restoring the 
functions and values of the enrolled land. In each State, the State 
Conservationist, with the assistance of the State Technical Committee, 
shall determine easement payment rates to be applied to specific 
geographic areas within the State or to individual easement areas. In 
order to provide for better uniformity among States, the Regional 
Conservationist may review and adjust, as appropriate, any easement 
payment rates established within a region.
    Compensation for easements acquired by the Secretary under the WRP 
must be an agreed upon amount, but not to exceed the fair market value 
of the land less the fair market value of such land encumbered by the 
easement, a method of valuation known as the before and after value of 
the land. In response to this requirement and the further desire to 
ensure that the program focus is [[Page 28513]] largely to maximize net 
environmental benefits per expenditure of federal funds, the 
compensation for the easements is limited to the agricultural value of 
the lands. Based upon acquisition experience, the effect of the WRP 
easement is largely to eliminate agricultural uses of the land. 
Therefore, to utilize the agricultural value of the land is equivalent 
to the value of the easement utilizing the traditional before and after 
method of valuation. Under this calculation of compensation, other 
speculative and higher uses are not considered in the determination of 
compensation rates. Furthermore, any compatible agricultural use of the 
easement area is limited to such level and timing of use as is integral 
to achieving and maintaining optimum wetland restoration benefits, and 
not for the purpose of achieving economic profit.
    Therefore, the easement value rates will be determined using the 
best information which is readily available for assessing the values of 
land for agricultural purposes. Such information may include soil 
types, cropping histories, production histories, location, real estate 
market values, appraisals and market analyses, and tax rates and 
assessments.
    To achieve program cost efficiency in relation to the ecological 
benefits to be achieved, the restoration of wetlands which maximize net 
environmental benefits per expenditure of federal funds will be 
emphasized. One source of accomplishing this cost-efficiency goal is to 
establish maximum easement payments for the State or geographic areas 
of the State. Maximum easement payment limitations may be available for 
public review prior to the sign-up period. No easement payment shall 
exceed the fair market value of the land rights being acquired.
    Section 3837a of Title 16, United States Code, provides that the 
easements purchased under the WRP shall be in a recordable form and 
shall be for 30 years, permanent, or the maximum duration allowed under 
applicable State laws. Section 3837c(c) provides that in determining 
the acceptability of offers, consideration may be given to the extent 
to which the purposes of the program can be accomplished on the land, 
the productivity of the land, and the on-farm and off-farm 
environmental threats if the land is used for the production of 
agricultural commodities. In addition, section 3837c(d) provides that 
to the extent practicable, taking into consideration costs and future 
agricultural and food needs, the Secretary shall give priority to 
obtaining permanent easements before shorter term easements and, in 
consultation with the Secretary of the Interior, shall place priority 
on acquiring easements based on the value of the easement for restoring 
and protecting habitat for migratory birds and other wildlife. In order 
to accomplish this goal, Sec. 620.6 and Sec. 620.8(b)(5) of the interim 
rule provide that permanent easements will be preferred whenever 
possible.
    Before proceeding to acquire a non-permanent easement, the State 
Conservationist will first seek to acquire any permanent easement offer 
that is determined to have the ecological and cost characteristics that 
warrant acquisition. After the effort to acquire permanent easements is 
completed, and provided that funding continues to be available, the 
State Conservationist, following review and approval of the request by 
the Regional Conservationist and the Chief, may pursue the acquisition 
of non-permanent easements.
    The Regional Conservationist and the Chief, when considering the 
request of the State Conservationist, will simultaneously consider any 
backlog of unaccepted permanent easements offers that may exist in 
other areas of the region and Nation before approval of the acquisition 
of non-permanent easements is granted.
    On land encumbered by permanent easements, the law establishing WRP 
allows for the Secretary to pay all the restoration costs or to cost-
share with the landowner. The cost-share formula recognizes that the 
ecological benefits associated with a non-permanent easement is 
significantly less than that which would be associated with a permanent 
easement on the same land. Thus, 16 U.S.C. 3837c(b) provides for a 
smaller cost-share payment-rate on land encumbered with non-permanent 
easements than on land encumbered with permanent easements. In 
particular, section 3837c(b) provides for cost-share payments on non-
permanent easements to range from 50 percent to 75 percent of 
restoration costs, whereas the cost-share payments on areas with 
permanent easements range from 75 percent to 100 percent of restoration 
costs (16 U.S.C. 3837c(b)). These restoration cost-share rates apply to 
NRCS expenditures and do not prohibit the landowner from obtaining 
cost-share assistance from other entities.
    Under this rule, this statutory distinction between cost-share 
payments made for permanent versus non-permanent easements is 
replicated in the payment for the easements. For a given easement on a 
particular area of land, payments for non-permanent easements will be 
between 50 percent and 75 percent of that which would be paid for a 
permanent easement. Easement payments for a short-term, 30-year 
easement will be 50 percent of that which would have been paid for a 
permanent easement. Such reduced easement payments are consistent with 
the significant reduction in ecological benefits and cost efficiency 
associated with non-permanent easements.
    Landowners will be allowed to apply for transfer of eligible land 
from the CRP to WRP. Enrollment in WRP will not require the refund of 
past payments or require a reduced WRP easement payment. CRP contracts 
will be terminated at the time of enrollment in WRP.
    This is a voluntary program designed to achieve cost-effective, 
long-lasting wetland restoration, and the NRCS shall not acquire 
easements by eminent domain or other non-voluntary acquisition 
procedures. As a means of improving selection competitiveness, 
landowners may accept cost-share or easement payments less than that 
which may be determined applicable for the particular easement.
    During announced sign-up periods, interested landowners will be 
able to apply for enrollment by stating on an NRCS form their intention 
to participate. This Application for Participation must be submitted 
during an announced period for submissions. Sign-up periods may be 
announced periodically by the NRCS.
    The State Conservationist, with the assistance of the State 
Technical Committee, will develop a ranking process. Each of the 
applications that are submitted by eligible landowners for eligible 
lands shall be evaluated according to the following factors: (1) 
Duration of the easement, (2) wetland functions and values, (3) habitat 
for migratory birds and other wildlife, particularly at risk species, 
(4) location significance, (5) wetland management requirements, (6) 
likelihood of success of restoration, (7) easement purchase and 
restoration costs borne by the NRCS, and (8) other environmental (e.g. 
water quality) or cost factors determined appropriate by the NRCS.
    It is the intention of the NRCS in ranking the applications to 
enroll the wetlands that provide the greatest environmental benefits 
while taking into consideration the cost of restoration, easement 
purchase, and associated costs. The ranking process will emphasize 
factors that (1) Ensure the effectiveness of the restored wetland 
functions and values, and (2) incorporate regional and State ecological 
priorities. The Chief, NRCS, may identify and accept certain 
[[Page 28514]] easements that advance the national goals of the WRP, 
even if such lands would not otherwise receive priority under the 
regional or State ranking procedures. For example, the Chief may 
allocate funds for purposes related to special pilot programs for 
wetland management and monitoring, cooperative agreements with other 
Federal or State agencies for program implementation, or for 
coordination of easement enrollment across State boundaries.
    All landowners who want to enroll land in the WRP shall: (1) Grant 
to the United States a reserved interest easement on the land; (2) 
agree to the implementation of a Wetlands Reserve Plan of Operation 
(WRPO); (3) provide for the creation and recordation of a deed 
restriction covering the easement area; and (4) ensure consent to the 
easement from persons holding a security interest in the property. The 
WRPO will be completed in consultation with the U.S. Fish and Wildlife 
Service and the Conservation District. The WRPO specifies the manner in 
which the enrolled land will be restored, operated, and maintained to 
accomplish the goals of the program.
    Section 3837a(b) of Title 16, United States Code, requires, in 
addition, that the easement allow: (1) Repairs, improvements, and 
inspections on such lands that are necessary to maintain existing 
public drainage systems; and (2) landowners to control public access on 
the easement area while identifying access routes to be used for 
wetland restoration activities, management and monitoring. Section 
3837a(b) also requires that the terms of the easement prohibit such 
activities as spraying with chemicals or mowing of the land except as 
allowed to comply with Federal or State noxious weed laws or Federal or 
State emergency pest treatment programs. These provisions have been 
incorporated into Sec. 620.10 of this interim rule.
    A major program participation requirement contained in Sec. 620.10 
is the inclusion in the easement of the right of the United States to 
determine if a specific use of the easement area may be permitted as 
compatible. For a use to be considered compatible, the Chief or 
designee must determine that the use is consistent with the long term 
protection and enhancement of the wetland resources for which the 
easement was established.
    The uses commonly considered compatible include hunting and 
fishing, haying, grazing, and harvest of timber. Hunting and fishing 
are generally considered compatible where the activities are carried 
out under the established State and Federal regulations that govern 
such uses. Haying, grazing, and timbering, because of the potential for 
substantial and adverse impacts upon the vegetative conditions of the 
easement area, may only be considered compatible under specifically 
prescribed circumstances that are directly associated with site-
specific conditions as influenced by soil productivity, time of year, 
short and long term weather patterns, and other factors that may from 
time to time be pertinent. The type, method, timing, duration, and 
extent of a use, to be deemed compatible, must be an integral and 
positive part of the overall management plan for the easement area. For 
example, in a restored forested wetland easement area, a salvage cut to 
remove diseased or damaged trees may be appropriate. A selective 
harvest of overstory trees which opens up the canopy to provide for 
understory vegetative diversity may also be compatible in specific 
cases. A clear cutting approach to timber harvest, however, for the 
purpose of achieving economic gain at the expense of wetland functions 
and values would not be compatible with forested wetland functions and 
values.
    Section 3837a(g) of Title 16, United States Code, provides that in 
the case of any violation of the terms and conditions of the easement 
or WRPO, the easement shall remain in force and the owner may be 
required to refund all or part of the payments made together with 
interest. Accordingly, this requirement has been incorporated into 
Sec. 620.14 of this interim rule.
    Once an easement has been recorded, a landowner can request 
modifications that do not adversely affect the functions and values for 
which the easement was established. Any modification, however, must 
result in equal or greater environmental and economic values to the 
United States, as determined by the NRCS in consultation with the U.S. 
Fish and Wildlife Service.
    During the 1994 WRP sign-up, landowners in only 20 States could 
participate in the WRP. In fiscal year 1995 and subsequent years, no 
specific geographic limitation is required and eligible landowners in 
all 50 States and territories and possessions of the United States may, 
subject to a determination by the Chief, be given the opportunity to 
participate in the WRP.
    This interim rule establishes a new part in chapter VI, title 7 of 
the Code of Federal Regulations, and makes the following changes to the 
administration of the program:
    (1) Identifies possible enrollment availability in all 50 States, 
the District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Virgin Islands of the United States, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and the Trust Territory of the Pacific 
Islands;
    (2) Expands land eligibility to certain agricultural lands that do 
not have a cropping history, such as former or degraded wetlands 
presently used for pasture and hayland;
    (3) Provides a non-permanent easement option;
    (4) Makes other changes to the administration of the program to 
become consistent with NRCS structure, policies, and procedures; and
    (5) Delegates additional decision-making authority to the NRCS 
Regional Conservationists and State Conservationists with assistance 
provided by the State Technical Committees.

List of Subjects in 7 CFR Part 620

    Administrative practices and procedures, Natural resources, 
Wetlands.
CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
AGRICULTURE
    Accordingly, 7 CFR chapter VI is amended as follows:
    1. The heading of Chapter VI is revised to read as set forth above.
    2. In 7 CFR Chapter VI (consisting of parts 600-663), all 
references to ``Soil Conservation Service'' are revised to read 
``Natural Resources Conservation Service,'' and all references to 
``SCS'' are revised to read ``NRCS.''
    3. A new part 620 is added to read as follows:

PART 620--WETLANDS RESERVE PROGRAM

Sec.
620.1 Purpose and scope.
620.2 Definitions.
620.3 Administration.
620.4 Program requirements.
620.5 Application procedures.
620.6 Establishing priority for enrollment of properties in WRP.
620.7 Enrollment.
620.8 Compensation for easements.
620.9 Cost-share payments.
620.10 Program participation requirements.
620.11 The WRPO development.
620.12 Modifications.
620.13 Transfer of land.
620.14 Violations and remedies.
620.15 Payments not subject to claims.
620.16 Assignments.
620.17 Appeals.
620.18 Scheme and device.

    Authority: 16 U.S.C. 590a et seq., 3837 et seq. [[Page 28515]] 


Sec. 620.1   Purpose and scope.

    (a) The regulations in this part set forth the policies, 
procedures, and requirements for the Wetlands Reserve Program (WRP) as 
administered by the Natural Resources Conservation Service (NRCS) for 
program implementation and processing outstanding and new applications 
for enrollment during calendar year 1995 and thereafter.
    (b) The Chief, NRCS, may implement WRP in any of the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
Islands of the United States, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the Trust Territories of the Pacific 
Islands.


Sec. 620.2  Definitions.

    The following definitions shall be applicable to this part:
    Agricultural commodity means any crop planted and produced by 
annual tilling of the soil or on an annual basis by one trip planters, 
or alfalfa and other multi-year grasses and legumes in rotation as 
approved by the Secretary. Land shall be considered planted to an 
agricultural commodity during a crop year if, as determined by the 
NRCS, an action of the Secretary prevented land from being planted to 
the commodity during the crop year.
    Chief means the Chief of the Natural Resources Conservation Service 
or the person delegated authority to act for the Chief.
    Commenced conversion wetland means a wetland or converted wetland 
for which the Consolidated Farm Service Agency has determined that the 
wetland manipulation was contracted for, started, or for which 
financial obligation was incurred before December 23, 1985.
    Conservation District is a subdivision of a State or local 
government organized pursuant to applicable State law to promote soil 
and water conservation practices.
    Conservation Reserve Program (CRP) means the program administered 
by the Secretary of Agriculture and referenced at 7 CFR Parts 704 and 
1410.
    Consolidated Farm Service Agency (CFSA) is an agency of the United 
States Department of Agriculture.
    Contract means the NRCS document that specifies the obligations and 
rights of any person who has been accepted for participation in the 
program.
    Converted wetland means a wetland that has been drained, dredged, 
filled, leveled, or otherwise manipulated (including the removal of 
woody vegetation, or any activity that results in impairing or reducing 
the flow, circulation, or reach of water) for the purpose, or that has 
the effect, of making the production of an agricultural commodity 
possible if such production would not have been possible but for such 
action.
    Cost-share payment means the payment made by the NRCS to achieve 
the restoration of the wetland functions and values of the easement 
area in accordance with the WRPO.
    Easement means a reserved interest easement which is an interest in 
land defined and delineated in a deed whereby the landowner conveys all 
rights, title, and interests in a property to the grantee, but the 
landowner retains those rights, title, and interests in the property 
which are specifically reserved to the landowner in the easement deed.
    Easement area means the land encumbered by an easement.
    Easement payment means the consideration paid to a landowner for an 
easement conveyed to the United States under the WRP.
    Farmed wetland means wetlands that were manipulated and used to 
produce an agricultural commodity prior to December 23, 1985, but had 
not been converted prior to that date and, therefore, are not prior 
converted croplands. These areas include potholes, playas, and pocosins 
that still meet the wetland criteria, and other wetlands that are 
seasonally ponded or flooded for an extended period of time during the 
growing season.
    Farmed wetland pasture means wetlands that were manipulated and 
managed for pasture or hayland prior to December 23, 1985, but still 
meet wetland criteria and are not abandoned, or were prior converted 
croplands or farmed wetlands that were not cropped for 5 successive 
years, but were used for forage production during that time and have 
not been abandoned.
    Forest Service is an agency of the United States Department of 
Agriculture.
    Landowner means a person or persons having legal ownership of 
farmland, including those who may be buying farmland under a purchase 
agreement. Landowner may include all forms of collective ownership 
including joint tenants, tenants in common, and life tenants and 
remaindermen in a farm property.
    Lands substantially altered by flooding means areas where flooding 
has created wetland hydrologic conditions which, with a high degree of 
certainty, will develop wetland soil and vegetation characteristics 
over time.
    Natural Resources Conservation Service (NRCS) is an agency of the 
United States Department of Agriculture, formerly called the Soil 
Conservation Service.
    Permanent easement means an easement that lasts in perpetuity.
    Person means one or more individuals, partnerships, associations, 
corporations, estates or trusts, or other business enterprises or other 
legal entities and, whenever applicable, a State, a political 
subdivision of a State, or any agency thereof.
    Practice means a restoration measure necessary or desirable to 
accomplish the desired program objectives.
    Prior converted cropland means wetlands that before December 23, 
1985, were drained, dredged, filled, leveled, or otherwise manipulated 
including the removal of woody vegetation, for the purpose, or to have 
the effect, of making the production of an agricultural commodity 
possible and an agricultural commodity has been produced at least once 
before December 23, 1985.
    Riparian areas means areas of land that occur along streams, 
channels, rivers, and other water bodies. These areas are normally 
distinctly different from the surrounding lands because of unique soil 
and vegetation characteristics, may be identified by distinctive 
vegatative communities which are reflective of soil conditions normally 
wetter than adjacent soils, and generally provide a corridor for the 
movement of wildlife.
    State Technical Committee means a committee established by the 
Secretary of the U.S. Department of Agriculture in a State pursuant to 
16 U.S.C. 3861. For the purposes of the WRP, the State Conservationist 
will be the chairperson of the State Technical Committee.
    U.S. Fish and Wildlife Service is an agency of the United States 
Department of the Interior.
    Wetland means land that:
    (1) Has a predominance of hydric soils;
    (2) Is inundated or saturated by surface or groundwater at a 
frequency and duration sufficient to support a prevalence of 
hydrophytic vegetation typically adapted for life in saturated soil 
conditions; and
    (3) Does support a prevalence of such vegetation under normal 
circumstances. For purposes of WRP, wetland shall also refer to 
adjacent lands that contribute to wetland functions and values.
    Wetland functions and values means the hydrological and biological 
characteristics of wetlands and the social worth placed upon these 
characteristics, including:
    (1) Habit for migratory birds and other wildlife, in particular at 
risk species;
    (2) Protection and improvement of water quality; [[Page 28516]] 
    (3) Attenuation of water flows due to flood;
    (4) The recharge of ground water;
    (5) Protection and enhancement of open space and aesthetic quality;
    (6) Protection of flora and fauna which contributes to the Nation's 
natural heritage; and
    (7) Contribution to educational and scientific scholarship.
    Wetland restoration means the rehabilitation of degraded or lost 
habitat in a manner such that:
    (1) The original vegetation community and hydrology are, to the 
extent practical, re-established; or
    (2) A community different from what likely existed prior to 
degradation of the site is established. The hydrology and native self-
sustaining vegetation being established will substantially replace 
original habitat functions and values but does not involve more than 30 
percent of the wetland restoration area.
    WRP means the Wetlands Reserve Program.
    WRPO means the Wetlands Reserve Plan of Operations.


Sec. 620.3  Administration.

    (a) The regulations in this part will be administered under the 
general supervision and direction of the Chief.
    (b) The Chief is authorized to modify or waive a provision of this 
part if the Chief deems the application of that provision to a 
particular limited situation to be inappropriate and inconsistent with 
the environmental and cost-efficiency goals of the WRP. This authority 
cannot be further delegated. The Chief may not modify or waive any 
provision of this part which is required by applicable law.
    (c) As determined by the Chief and the Administrator of the 
Consolidated Farm Service Agency, the NRCS will seek the agreement of 
the Consolidated Farm Service Agency in establishing policies, 
priorities, and guidelines related to the implementation of this part.
    (d) The State Conservationist will consult with the State Technical 
Committee on the development of the rates of compensation for an 
easement, a priority ranking process, and related policy matters.
    (e) The NRCS may delegate at any time easement management, 
monitoring, and enforcement responsibilities to other Federal or State 
agencies.
    (f) The NRCS may enter into cooperative agreements with Federal or 
State agencies and with private conservation organizations to assist 
the NRCS with educational efforts, easement management and monitoring, 
and program implementation assistance.
    (g) The NRCS shall consult with the U.S. Fish and Wildlife Service 
in the implementation of the program and in establishing program 
policies. The NRCS may consult with other Federal and State agencies 
and other organizations in program administration. No determination by 
the U.S. Fish and Wildlife Service, Federal, or State agency shall 
compel the NRCS to take any action which the NRCS determines will not 
serve the purposes of the program established by this part.
    (h) The Chief may allocate funds for such purposes related to 
special pilot programs for wetland management and monitoring, 
emergencies, cooperative agreements with other Federal or State 
agencies for program implementation, coordination of easement 
enrollment across State boundaries, or for other goals of the WRP found 
in this part.


Sec. 620.4  Program requirements.

    (a) General. Under the WRP, the NRCS will purchase conservation 
easements from eligible landowners who voluntarily cooperate in the 
restoration and protection of wetlands and associated lands. To 
participate in WRP, a landowner will agree to the implementation of a 
Wetlands Reserve Plan of Operations (WRPO), the effect of which is to 
restore, protect, enhance, maintain, and manage the hydrologic 
conditions of inundation or saturation of the soil, native vegetation, 
and natural topography of eligible lands. The NRCS may provide cost-
share assistance for the activities that promote the restoration, 
protection, enhancement, maintenance, and management of wetland 
functions and values. Specific restoration, protection, enhancement, 
maintenance, and management actions may be undertaken by the landowner 
or other NRCS designee.
    (b) Acreage limitations.
    (1) Except for areas devoted to windbreaks or shelterbelts after 
November 28, 1990, no more than 25 percent of the total cropland in any 
county, as determined by the Consolidated Farm Service Agency, may be 
placed in the Environmental Conservation Acreage Reserve Program, 16 
U.S.C. 3830, and no more than 10 percent of the total cropland in the 
county may be subject to an easement.
    (2) The NRCS and the Consolidated Farm Service Agency shall concur 
before a waiver of either the 25 percent limit or the 10 percent limit 
of this subsection can be approved for an easement proposed for 
enrollment in the WRP. Such a waiver will only be approved if it will 
not adversely affect the local economy.
    (c) Landowner eligibility. To be eligible to participate in the 
WRP, a person must:
    (1) Be the landowner of eligible land for which enrollment is 
sought;
    (2) Have been the landowner of such land for the 12 months prior to 
the time the intention to participate is declared unless it is 
determined by the State Conservationist that the land was acquired by 
will or succession as a result of the death of the previous landowner, 
or that adequate assurances have been presented to the State 
Conservationist that the new landowner of such land did not acquire 
such land for the purpose of placing it in the WRP; and
    (3) Agree to provide such information to the NRCS as the agency 
deems necessary or desirable to assist in its determination of 
eligibility for program benefits and for other program implementation 
purposes.
    (d) Eligible land.
    (1) The NRCS shall determine whether land is eligible for 
enrollment and whether, once found eligible, the lands may be included 
in the program based on the likelihood of successful restoration of 
wetland functions and values when considering the cost of acquiring the 
easement and restoration, protection, enhancement, maintenance, and 
management costs.
    (2) Land which meets the eligibility requirements of this section 
shall only be considered for enrollment in WRP if the NRCS determines, 
in consultation with the U.S. Fish and Wildlife Service, that the 
wetland functions and values can and will be restored, protected, 
enhanced, maintained, and managed.
    (3) The following land is eligible for enrollment in the WRP, which 
land may have been determined by the NRCS pursuant to regulations and 
implementing policies is pertaining to wetland conservation found at 7 
CFR 12.30-12.33, as:
    (i) Wetlands farmed under natural conditions, farmed wetlands, 
prior converted cropland, commenced conversion wetlands, farmed wetland 
pastures, and lands substantially altered by flooding so as to develop 
wetland functions and values;
    (ii) Former or degraded wetlands that occur on lands that have been 
used or are currently being used for the production of food and fiber, 
including rangeland and forest production lands, where the hydrology 
has been significantly degraded or modified and will be substantially 
restored;
    (iii) Riparian areas along streams or other waterways that link or, 
after restoring the riparian area, will link wetlands which are 
protected by an [[Page 28517]] easement or other device or circumstance 
that achieves the same objectives as an easement:
    (iv) Land adjacent to the restored wetland which would contribute 
significantly to wetland functions and values including buffer areas, 
wetland creations, and non-cropped neutral wetlands, but not more than 
the State Conservationist, in consultation with the State Technical 
Committee, determines is necessary for such contribution;
    (v) Other wetlands that would not otherwise be eligible but would 
significantly add to the wetland functions and values; and
    (vi) Wetlands that have been restored under a private, State, or 
Federal restoration program with an easement or deed restriction with a 
duration of less than 30 years.
    (4) To be enrolled in the program, eligible land must be configured 
in a size and with boundaries that allow for the efficient management 
of the area for easement purposes and otherwise promote and enhance 
program objectives.
    (e) Ineligible land. The following land is not eligible for 
enrollment in the WRP:
    (1) Converted wetlands if the conversion was commended after 
December 23, 1985;
    (2) Land that contains timber stands established under a CRP 
contract;
    (3) Lands owned by an agency of the United States;
    (4) Land subject to an easement or deed restriction with a duration 
of 30 years or more prohibiting the production of agricultural 
commodities; and,
    (5) Lands where implementation of restoration practices would be 
futile due to on-site or off-site conditions.
    (f) Enrollment of CRP lands. Land subject to an existing CRP 
contract may be enrolled into the WKP only if the land and landowner 
meet the requirements of this part, and the enrollment is requested by 
the landowner and agreed to by the NRCS. To enroll in WRP, the CRP 
contract for the property shall be terminated or otherwise modified 
subject to such terms and conditions as are mutually agreed upon by the 
Consolidated Farm Service Agency and the landowner.


Sec. 620.5  Application procedures.

    (a) Application for participation. To apply for enrollment, a 
landowner must submit an Application for Participation in the WRP. The 
application must be submitted during an announced period for such 
submissions.
    (b) Preliminary agency actions. By filing an Application for 
Participation, the landowner consents to an NRCS representative 
entering upon the land for purposes of assessing the wetland functions 
and values, and for other activities such as the development of the 
preliminary WRPO that are necessary or desirable for the NRCS to make 
offers of enrollment. The landowner is entitled to accompany an NRCS 
representative on any site visits.
    (c) Voluntary reduction in compensation. In order to enhance the 
probability of enrollment in WRP, a landowner may voluntarily offer to 
accept a lesser payment than is being offered by the NRCS.


Sec. 620.6  Establishing priority for enrollment of properties in WRP.

    (a) Ranking considerations. Based on applications for 
participation, the State Conservationist, in consultation with the U.S. 
Fish and Wildlife Service and the State Technical Committee, will rank 
properties based on: estimated costs of restoration and easement 
acquisition, availability of matching funds, significance of wetland 
functions and values, estimated success of restoration measures, and 
the duration of a proposed easement with permanent easements being 
given priority over non-permanent easements.
    (b) The NRCS may place higher priority on certain geographic 
regions of the State where restoration of wetlands may better achieve 
NRCS State and regional goals and objectives.
    (c) Notwithstanding any limitation of this part, the State 
Conservationist may enroll eligible lands at any time in order to 
encompass total wetland areas subject to multiple ownership or 
otherwise to achieve program objectives. Similarly, the State 
Conservationist may, at any time, exclude otherwise eligible lands if 
the participation of the adjacent landowners is essential to the 
successful restoration of the wetlands and those adjacent landowners 
are unwilling to participate.


Sec. 620.7  Enrollment.

    (a) Offers of enrollment. Based on the priority ranking, the NRCS 
will notify an affected landowner of tentative acceptance into the 
program for which the landowner has 15 calendar days to sign a letter 
of intent to continue. NRCS will select lands to maximize environmental 
benefits per expenditure of Federal funds.
    (b) Effect of letter of intent to continue (tentative acceptance). 
An offer of tentative acceptance into the program does not bind the 
NRCS or the United States to acquire an easement, nor does it bind the 
landowner to convey an easement or agree to WRPO activities. However, 
receipt of an executed letter of intent to continue will authorize the 
NRCS to proceed.
    (c) Acceptance of offer of enrollment. A contract will be presented 
by the NRCS to the landowner, which will describe the easement area; 
the easement terms and conditions; and other terms and conditions for 
participation that may be required by the NRCS. A landowner accepts 
enrollment in the WRP by signing contract.
    (d) Effect of the acceptance of the offer. After the contract is 
executed by NRCS and the landowner, the NRCS will proceed with various 
easement acquisition activities, which may include conducting a survey 
of the easement area, securing necessary subordination agreements, 
procuring title insurance, and conducting other activities necessary to 
record the easement or implement the WRPO.
    (e) Withdrawal of offers. Prior to execution by the United States 
and the landowner of the contract, the NRCS may withdraw its offer 
anytime due to availability of funds, inability to clear title, or 
other reasons. The offer to the landowner shall be void if not executed 
by the landowner within the time specified. The date of the offer shall 
be the date of notification to the landowner of tentative acceptance.


Sec. 620.8  Compensation for easements.

    (a) Establishment of rates.
    (1) The State Conservationist, in consultation with the State 
Technical Committee, shall determine easement payment rates to be 
applied to specific geographic areas within the State or to individual 
easement areas.
    (2) In order to provide for better uniformity among States, the 
Regional Conservationist and Chief may review and adjust, as 
appropriate, State or other geographically based easement payment 
rates.
    (b) Determination of easement payment rates.
    (1) Easement payment rates will be based upon analyses of the 
values of the lands when used for agricultural purposes. The landowner 
will receive the lesser of the following:
    (i) the geographic area rate;
    (ii) the value based on a market appraisal analysis/assessment; or
    (iii) the landowner offer.
    (2) Each State Conservationist will determine the easement payment 
rates using the best information which is readily available in that 
State for assessing the values of land for agricultural purposes. Such 
information may include: soil types, type(s) of crops capable of being 
grown, production [[Page 28518]] history, location, real estate market 
values, appraisals and market analyses, and tax rates and assessments. 
The State Conservationist may consult with other Federal agencies, real 
estate market experts, appraisers, local tax authorities, and other 
entities or persons which may provide information on productivity and 
market conditions.
    (3) Easement payments for non-permanent easements will be less than 
those for permanent easements because the quality and duration of the 
ecological benefits derived from a non-permanent easement are 
significantly less than those derived from a permanent easement on the 
same land. Easement payments for a non-permanent easement shall be 
determined by the Chief at between 50 percent and 75 percent of that 
which would have been paid for a permanent easement, with the actual 
percentage of compensation being determined by the Chief based upon the 
extent to which full restoration and ecological benefits can be 
achieved when compared to a permanent easement. Easement payments for 
the short-term 30-year easements shall be 50 percent of that which 
would have been paid for a permanent easement.
    (4) Before proceeding to acquire a non-permanent easement, the 
State Conservationist shall first seek to acquire any permanent 
easement offer that is determined to have the ecological and cost 
characteristics that warrant acquisition. After the effort to acquire 
permanent easements is completed, and provided that funding continues 
to be available, the State Conservationist, in consultation with the 
State Technical Committee and following review and approval of the 
request by the Regional Conservationist and the Chief, may pursue the 
acquisition of non-permanent easements.
    (5) The Regional Conservationist and the Chief, when considering 
the request of the State Conservationist for approval to acquire a non-
permanent easement, will simultaneously consider any backlog of 
unaccepted permanent easement offers that may exist in other areas of 
the region and Nation before approval of the acquisition of non-
permanent easements is granted.
    (c) Maximum payments. In order to ensure that limited program funds 
are expended to maximize program benefits, the State Conservationist, 
in consultation with the State Technical Committee, may establish a 
maximum easement payment for any one easement within a State or for 
geographic areas within a State.
    (d) Preliminary estimates of easement payments. Upon request of the 
landowner prior to filing an application for enrollment, a landowner 
may be appraised of the maximum easement payment rates.
    (e) Acceptance of offered easement compensation.
    (1) The NRCS will not acquire any easement unless the landowner 
accepts the amount of the easement payment which is offered by the 
NRCS. The easement payment may or may not equal the fair market value 
of the interests and rights to be conveyed by the landowner under the 
easement. By voluntarily participating in the program, a landowner 
waives any claim to additional compensation based on fair market value.
    (2) For permanent easements, the NRCS may make one lump-sum cash 
easement payment after the easement is recorded.
    (3) For non-permanent easements, the easement payment shall be made 
in no less than 5 annual payments or no more than 20 annual payments.
    (f) Reimbursement of a landowner's expenses. For completed easement 
conveyances, the NRCS will reimburse landowners for their fair and 
reasonable expenses, if any, incurred for surveying and related costs, 
as determined by the NRCS. The State Conservationist, in consultation 
with the State Technical Committee, may establish maximum payments to 
reimburse landowners for reasonable expenses.
    (g) Tax implications of easement conveyances. Subject to applicable 
regulations of the Internal Revenue Service, a landowner may be 
eligible for a bargain sale tax deduction which is the difference 
between the fair market value of the easement conveyed to the United 
States and the easement payment made to the landowner. The NRCS 
disclaims any representations concerning the tax implications of any 
easement or cost-share transaction.
    (h) Payment limitation on non-permanent easements. With respect to 
non-permanent easements, the annual amount of easement payments to any 
person shall not exceed $50,000.
    (i) If easement payments are calculated on a per acre basis, 
adjustment to stated easement payment will be made based on final 
determination of acreage.


Sec. 620.9  Cost-share payments.

    (a) In addition to easement payments, the NRCS may share the cost 
with landowners of restoring the enrolled land as provided in the WRPO 
after the easement is recorded. The amount and terms and conditions of 
the cost-share assistance shall be subject to the following 
restrictions on the costs of establishing or installing practices 
specified in the WRPO:
    (1) On enrolled land subject to a permanent easement, the NRCS 
shall offer to pay not less than 75 percent nor more than 100 percent 
of such costs; and
    (2) On enrolled land subject to a non-permanent easement, the NRCS 
shall offer to pay not less than 50 percent nor more than 75 percent of 
such costs. Cost-share payments offered by NRCS for the short-term, 30-
year easements shall be 50 percent.
    (b) Cost-share payments may be made only upon a determination by 
the NRCS that an eligible practice or an identifiable unit of the 
practice has been established in compliance with appropriate standards 
and specifications. Identified practices may be implemented by the 
landowner or other designee.
    (c) Cost-share payments may be made for the establishment and 
installation of additional eligible practices, or the maintenance or 
replacement of an eligible practice, but only if NRCS determines the 
practice is needed to meet the objectives of the easement, and the 
failure of the original practices was due to reasons beyond the control 
of the landowner.
    (d) A landowner may seek additional cost-share assistance from 
other public or private organizations as long as the activities funded 
are in compliance with this part. In no event shall the landowner 
receive an amount which exceeds 100 percent of the total actual cost of 
the restoration.


Sec. 620.10  Program participation requirements.

    (a) To enroll land in WRP, a landowner shall grant an easement to 
the United States. The easement shall require that the easement area be 
maintained in accordance with WRP goals and objectives for the duration 
of the term of the easement, including the restoration, protection, 
enhancement, maintenance, and management of wetland and other land 
functions and values.
    (b) For the duration of its term, the easement shall require, at a 
minimum, that the landowner, and the landowner's heirs, successors and 
assigns, shall cooperate in the restoration, protection, enhancement, 
maintenance, and management of the land in accordance with the easement 
and with the terms of the WRPO. In addition, the easement shall grant 
to the United States, through the NRCS:
    (1) A right of access to the easement area; [[Page 28519]] 
    (2) The right to permit compatible uses of the easement area, 
including such activities as hunting and fishing, managed timber 
harvest, or periodic haying or grazing, if such use is consistent with 
the long-term protection and enhancement of the wetland resources for 
which the easement was established;
    (3) All rights, title and interest in the easement area subject to 
compatible uses reserved to the landowner; and,
    (4) The right to perform restoration, protection, enhancement, 
maintenance, and management activities on the easement area.
    (c) The landowner shall convey title to the easement which is 
acceptable to the NRCS. The landowner shall warrant that the easement 
granted to the United States is superior to the rights of all others, 
except for exceptions to the title which are deemed acceptable by the 
NRCS.
    (d) The landowner shall:
    (1) Comply with the terms of the easement;
    (2) Comply with all terms and conditions of any associated 
contract;
    (3) Agree to the permanent retirement of any existing cropland base 
and allotment history for the easement area under any program 
administered by the Secretary, as determined by the Consolidated Farm 
Service Agency;
    (4) Agree to the long-term restoration, protection, enhancement, 
maintenance, and management of the easement in accordance with the 
terms of the easement and related agreements;
    (5) The landowner may have the option to enter into an agreement 
with governmental or private organizations to assist in carrying out 
any landowner responsibilities on the easement area; and,
    (6) Agree that each person who is subject to the easement shall be 
jointly and severally responsible for compliance with the easement and 
the provisions of this part and for any refunds or payment adjustment 
which may be required for violation of any terms or conditions of the 
easement or the provisions of this part.


Sec. 620.11  The WRPO development.

    (a) The NRCS shall prepare the WRPO in consultation with the U.S. 
Fish and Wildlife Service and the Conservation District. At the local 
level, the NRCS must reach agreement with the U.S. Fish and Wildlife 
Service. If agreement cannot be reached, the WRPO will be forwarded to 
the State Conservationist, who, giving consideration to the information 
provided by the U.S. Fish and Wildlife Service, will develop the WRPO. 
In all cases of disagreement at the local level, the NRCS and the U.S. 
Fish and Wildlife Service will file a report with their respective 
national offices.
    (b) The WRPO shall specify the manner in which the enrolled land 
shall be restored, protected, enhanced, maintained, and managed to 
accomplish the goals of the program.


Sec. 620.12  Modifications.

    (a) Easements.
    (1) After an easement has been recorded, no modification will be 
made in the easement except by manual agreement with the Chief and the 
landowner. The Chief will consult with the U.S. Fish and Wildlife 
Service and the Conservation District prior to making any modifications 
to easements.
    (2) Approved modifications will be made only in an amended easement 
which is duly prepared and recorded in conformity with standard real 
estate practices, including requirements for title approval, 
subordination of liens, and recordation.
    (3) The Chief may approve modifications to facilitate the practical 
administration and management of the easement area or the program so 
long as the modification will not adversely affect the wetland 
functions and values for which the easement was acquired.
    (4) Modifications must result in equal or greater environmental and 
economic values to the United States.
    (b) WRPO. Insofar as is consistent with the easement and applicable 
law, the Chief may approve modifications to the WRPO after consultation 
with the U.S. Fish and Wildlife Service. Any WRPO modification must 
meet WRP program objectives, and must result in equal or greater 
environmental and economic values to the United States. Modifications 
to the WRPO which are substantial and affect provisions of the easement 
may require agreement from the landowner and require execution of an 
amended easement.


Sec. 620.13  Transfer of land.

    (a) Offers voided. Any transfer of the property prior to the 
landowner acceptance into the program shall void the offer of 
enrollment. At the option of the State Conservationist, an offer can be 
extended to the new landowner if the new landowner agrees to the same 
or more restrictive easement and contract terms and conditions.
    (b) Payments to landowners.
    (1) For non-permanent easements with multiple annual payments, any 
remaining easement payments will be made to the original landowner 
unless the NRCS receives an assignment of proceeds from the original 
landowner to a successor in title.
    (2) The new landowner or purchaser shall be held responsible for 
assuring completion of all measures and practices required by the 
contract. Eligible cost-share payments shall be made to the new 
landowner upon presentation of an assignment of rights or other 
evidence that title had passed.
    (c) Claims to payments. With respect to any and all payments owed 
to landowners, the United States shall bear no responsibility for any 
full payments or partial distributions of funds between the original 
landowner and the landowner's successor. In the event of a dispute or 
claim on the distribution of cost-share payments, the NRCS may withhold 
payments without the accrual of interest pending an agreement or 
adjudication on the rights to the funds.


Sec. 620.14  Violations and remedies.

    (a) In the event of a violation of the easement or any associated 
contract directly involving the landowner, the landowner shall be given 
reasonable notice and an opportunity to voluntarily correct the 
violation within 30 days of the date of the notice, or such additional 
time as the State Conservationist may allow.
    (b) Notwithstanding paragraph (a) of this section, the NRCS 
reserves the right to enter upon the easement area at any time to 
remedy deficiencies or easement violations. Such entry may be made at 
the discretion of the NRCS when such actions are deemed necessary to 
protect important wetland functions and values or others rights of the 
United States under the easement. The landowner shall be liable for any 
costs incurred by the United States as a result of the landowner's 
negligence or failure to comply with easement or contractual 
obligations.
    (c) In addition to any and all legal and equitable remedies as may 
be available to the United States under applicable law, the NRCS may 
withhold any easement and cost-share payments owing to landowners at 
any time there is a material breach of the easement covenants or any 
associated contract. Such withheld funds may be used to offset costs 
incurred by the United States in any remedial actions or retained as 
damages pursuant to court order or settlement agreement.
    (d) The United states shall be entitled to recover any and all 
administrative and legal costs, including attorney's fees or expenses, 
associated with any enforcement or remedial action. [[Page 28520]] 


Sec. 620.15  Payments not subject to claims.

    Any cost-share or easement payment or portion thereof due any 
person under this part shall be allowed without regard to any claim or 
lien in favor of any creditor, except agencies of the United States 
Government.


Sec. 620.16  Assignments.

    Any person entitled to any cash payment under this program may 
assign the right to receive such cash payments, in whole or in part.


Sec. 620.17  Appeals.

    (a) A person participating in the WRP may obtain a review of any 
administrative determination concerning eligibility for participation 
utilizing the administrative appeal procedures pursuant to Title II, 
Subtitle B and Subtitle H of the Department of Agriculture 
Reorganization Act of 1994, Public Law 103-354.
    (b) Before a person may seek judicial review of any action taken 
under this part, the person must exhaust all administrative appeal 
procedures set forth in paragraph (a) of this section, and for purposes 
of judicial review, no decision shall be a final agency action except a 
decision of the Chief of NRCS under these procedures.
    (c) Any appraisals, market analysis, or supporting documentation 
that may be used by the NRCS in determining property value are 
considered confidential information, and shall only be disclosed as 
determined at the sole discretion of the NRCS in accordance with 
applicable law.


Sec. 620.18  Scheme and device.

    (a) If it is determined by the NRCS that a landowner has employed a 
scheme or device to defeat the purposes of this part, any part of any 
program payment otherwise due or paid such landowner during the 
applicable period may be withheld or be required to be refunded with 
interest thereon, as determined appropriate by the NRCS.
    (b) A scheme or device includes, but is not limited to, coercion, 
fraud, misrepresentation, depriving any other person of payments for 
cost-share practices or easements for the purpose of obtaining a 
payment to which a person would otherwise not be entitled.
    (c) A landowner who succeeds to the responsibilities under this 
part shall report in writing to the NRCS any interest of any kind in 
enrolled land that is held by a predecessor or any lender. A failure of 
full disclosure will be considered a scheme or device under this 
section.

    Signed at Washington, DC on May 19, 1995.
Gary A. Margheim,
Acting Chief, Natural Resources Conservation Service.
[FR Doc. 95-13161 Filed 5-31-95; 8:45 am]
BILLING CODE 3410-16-M`