Federal Register / Vol. 75, No. 101 / Wednesday, May 26, 2010 / Notices 29573 

be made publicly available at any time. 

While you can ask us in your comment 

to withhold your personal identifying 

information from public review, we 

cannot guarantee that we will be able to 

do so. 

Jean Sonneman, 

Acting Information Collection Clearance 

Officer. 

[FR Doc. 2010–12707 Filed 5–25–10; 8:45 am] 

BILLING CODE 4310–84–P 

DEPARTMENT OF THE INTERIOR 

National Park Service 

Concession Contracts; Implementation 

of Alternate Valuation Formula for 

Leasehold Surrender Interest in the 

Signal Mountain Lodge and Leek’s 

Marina Proposed Concession 

Contract, Grand Teton National Park 

AGENCY: National Park Service; Interior. 

ACTION: Notice. 

SUMMARY: The National Park Service 

(NPS), by notice in the Federal Register 

dated February 1, 2010, invited public 

comments on a proposed alternative 

formula for the valuation of leasehold 

surrender interest (LSI) pursuant to 

authority contained in Public Law 105– 

391 enacted in 1998 (the 1998 Act) to 

be included in its proposed concession 

contract GRTE003–11 for operation of 

the Signal Mountain Lodge and Leeks 

Marina at Grand Teton National Park 

(new contract). NPS invites further 

public comment in the proposed LSI 

alternative. 

DATES: Public comments will be 

accepted on or before June 25, 2010. 

ADDRESSES: Send comments to Ms. Jo 

Pendry, Chief, Commercial Services 

Program, National Park Service, 1201 

Eye Street, NW., 11th Floor, 

Washington, DC 20005, or via e-mail at 

jo_pendry@nps.gov or via fax at 202– 

371–2090. 

FOR FURTHER INFORMATION CONTACT: Jo 

Pendry, Chief Commercial Services 

Program, 202–513–7156. 

SUPPLEMENTARY INFORMATION: Public 

comments received in response to the 

February 1, 2010, Federal Register 

notice regarding the proposed LSI 

alternative expressed concerns, among 

other matters, that the notice did not 

contain a sufficient explanation of the 

relationship of the proposed LSI 

alternative to the objectives of providing 

a fair return to the government and 

fostering competition for the new 

contract. For this reason, NPS considers 

it appropriate to provide a further 

opportunity for public comment on the 

proposed LSI alternative. Although 

NPS, among other matters, is 

considering the possibility of changing 

the currently proposed LSI provisions of 

the new contract with respect to the 

treatment of fixtures for LSI purposes, 

the NPS will not make a final 

administrative decision in regard to the 

proposed LSI alternative until after full 

consideration of all public comments 

received in response to both this and the 

February 1, 2010, Federal Register 

notice. The submission date for 

proposals for the new contract has been 

extended to August 10, 2010, by notice 

in FedBizOpps (FedBizOpps.gov) under 

Solicitation No. GRTE003–11 published 

on April 29, 2010. 

The standard formula for LSI value for 

applicable improvements provided by a 

concessioner under a National Park 

Service concession contract as defined 

in 36 CFR Part 51 (‘‘standard LSI 

formula’’) is as follows: 

(1) The initial construction cost of the 

related capital improvement; 

(2) Adjusted by (increased or 

decreased) the same percentage increase 

or decrease as the percentage increase or 

decrease in the Consumer Price Index 

from the date the Director approves the 

substantial completion of the 

construction of the related capital 

improvement to the date of payment of 

the leasehold surrender interest value; 

(3) Less depreciation of the related 

capital improvement on the basis of its 

condition as of the date of termination 

or expiration of the applicable leasehold 

surrender interest concession contract, 

or, if applicable, the date on which a 

concessioner ceases to utilize a related 

capital improvement (e.g., where the 

related capital improvement is taken out 

of service by the Director pursuant to 

the terms of a concession contract). 

However, Section 405(a)(4) of Public 

Law 105–391 authorizes the inclusion of 

alternative LSI value formulas in 

concession contracts (such as the new 

contract) estimated to have an LSI value 

in excess of $10,000,000. Under this 

authority, the proposed LSI alternative 

is as follows: 

(1) Initial LSI Value. The reduction of 

the initial LSI value under the new 

contract on a monthly straight line 

depreciation basis applying a 40-year 

recovery period regardless of asset class. 

There is no adjustment of the initial LSI 

value as a result of the installation 

(including replacement) of fixtures in 

the related capital improvements during 

the term of the proposed contract; and 

(2) New LSI Value. The reduction of 

the LSI value in any new structures or 

major rehabilitations constructed during 

the term of the new contract to be based 

on straight line depreciation and also 

apply a 40-year recovery period (on a 

monthly basis) with no asset class 

distinctions. The construction cost of 

new capital improvements will include 

the costs of installed fixtures. Any 

installation (or replacement) of fixtures 

after the initial construction would not 

alter the established LSI value in the 

improvements. 

Section 405(a)(4) of the 1998 Act 

requires NPS, in certain circumstances, 

to determine that use of the LSI 

alternative, in comparison to the 

standard LSI formula, is necessary in 

order to provide a fair return to the 

government and to foster competition 

for the new contract by providing a 

reasonable opportunity for profit to the 

new concessioner. 

With regard to a fair return to the 

government, under the standard LSI 

formula the amount of money paid (by 

the government, directly or indirectly) 

for LSI as of the expiration of the new 

contract is inevitably speculative at the 

time of contract solicitation, contract 

award, and during the contract term. 

This is because the future rate of the 

Consumer Price Index (CPI), the amount 

of future physical depreciation that will 

occur, and the cost to cure such future 

physical depreciation, must all be 

estimated in advance of the new 

contract by both NPS and prospective 

concessioners. 

As a consequence, if the NPS were to 

establish the required minimum 

franchise fee for the new contract under 

the terms of the standard LSI formula, 

that minimum fee necessarily would 

incorporate speculative estimates of 

these factors. Likewise, if a prospective 

concessioner offered to meet or exceed 

the minimum franchise fee established 

by NPS under the standard LSI formula, 

its business decision would necessarily 

be made in reliance on speculative 

estimates of future CPI and future 

physical depreciation of LSI 

improvements. 

If the NPS depreciation and CPI 

assumptions made at the time of 

contract solicitation ultimately prove to 

be inaccurate, its minimum franchise 

fee will result in a less than fair return 

to the government. NPS therefore 

believes, subject to review of public 

comments, that the proposed LSI 

alternative, in comparison to the 

standard LSI formula, will better 

provide a fair return to the government 

under the new contract. 

NPS also believes (again, subject to 

review of public comments) that 

eliminating the speculative aspect of LSI 

value will help foster competition for 

the new contract by providing a 

reasonable opportunity to make a profit. 

This is because prospective 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
29574 Federal Register / Vol. 75, No. 101 / Wednesday, May 26, 2010 / Notices 

concessioners will know not only the 

amount of money they will be obliged 

to pay the prior concessioner for 

existing LSI under the terms of the new 

contract, but also will know with a high 

degree of certainty how much money 

they will recover from this payment 

upon the expiration of the new contract 

(based on the 40-year amortization 

period). The proposed LSI alternative 

effectively eliminates the speculation 

about physical depreciation and CPI 

that is required for proposed contracts 

under the standard LSI formula. The 

resulting lower risk and greater certainty 

in the business opportunity will foster 

competition for the new contract by 

providing a reasonable opportunity to 

make a profit. 

The proposed LSI alternative is 

projected to provide approximately the 

same rate of return for the new 

concessioner as the standard LSI 

formula. This is because, in developing 

the minimum franchise fee under the 

proposed LSI alternative, NPS estimated 

that the new contract would provide the 

new concessioner with a reasonable 

opportunity to make a net profit. This 

estimate took into consideration, among 

other matters, applicable industry rate 

of return expectations, the purchase 

price of the existing LSI improvements, 

and the LSI value that will be payable 

to the concessioner after contract 

expiration under the proposed LSI 

alternative. If the standard LSI formula 

were utilized, the projected LSI value 

payment to the new concessioner would 

necessarily be much higher, resulting in 

a much higher minimum franchise fee 

for the new contract. 

In other words, the lower LSI value 

payment upon contract expiration under 

the proposed LSI alternative (as 

opposed to the standard LSI formula) 

results in a lower minimum franchise 

fee, and achieves the same approximate 

projected rate of return to the 

concessioner. The proposed LSI 

alternative results in increased cash 

flows to the concessioner during the 

entire term of the contract, while the 

standard LSI formula provides a higher 

payment of LSI at the expiration of the 

contract. 

The proposed LSI alternative, if 

adopted by NPS, would be applicable 

only to the new contract, GRTE003–11. 

NPS has made no decision to apply the 

proposed LSI alternative or any other 

LSI alternative to future concession 

contracts. If the same or other 

alternative LSI formulas are considered 

for utilization in subsequent contracts 

pursuant to Section 405(a)(4) of the 

1998 Act, opportunities for public 

comment will be provided as required. 

NPS will provide notice of its final 

decision regarding the LSI provisions of 

the new contract in the Federal Register 

and/or in FedBizOpps (FedBizOpps.gov 

under Solicitation No. CC–GRTE003– 

11). 

Before including your address, phone 

number, e-mail address, or other 

personal identifying information in your 

comment, you should be aware that 

your entire comment—including your 

personal identifying information—may 

be made publicly available at any time. 

While you can ask us in your comment 

to withhold your personal identifying 

information from public review, we 

cannot guarantee that we will be able to 

do so. 

Daniel N. Wenk, 

Deputy Director, Operations. 

[FR Doc. 2010–12703 Filed 5–25–10; 8:45 am] 

BILLING CODE 4312–53–P 

DEPARTMENT OF THE INTERIOR 

National Park Service 

Final Legislative Environmental Impact 

Statement for the Harvest of GlaucousWinged Gull Eggs by the Huna Tlingit 

in Glacier Bay National Park 

AGENCY: National Park Service, Interior. 

ACTION: Notice of Availability of the 

Final Legislative Environmental Impact 

Statement for the Harvest of GlaucousWinged Gull Eggs by the Huna Tlingit 

in Glacier Bay National Park. 

SUMMARY: The National Park Service 

(NPS) announces the availability of a 

final Legislative Environmental Impact 

Statement (LEIS) for the harvest of 

glaucous-winged gull eggs by the Huna 

Tlingit in Glacier Bay National Park. 

The document describes and analyzes 

the environmental impacts of a 

preferred alternative and one additional 

action alternative for managing a limited 

harvest of glaucous-winged gull eggs. A 

no action alternative is also evaluated. 

This notice announces the availability 

of the final LEIS. 

DATES: A Record of Decision will be 

made no sooner than 30 days after the 

date the Environmental Protection 

Agency’s Notice of Availability for this 

final LEIS appears in the Federal 

Register. 

ADDRESSES: The final LEIS may be 

viewed online at http:// 

parkplanning.nps.gov. Hard copies of 

the final LEIS are available on request 

from the address below. 

FOR FURTHER INFORMATION CONTACT: 

Mary Beth Moss, Project Manager, 

Glacier Bay National Park and Preserve, 

Telephone: (907) 723–1777. 

SUPPLEMENTARY INFORMATION: The NPS 

has prepared an LEIS to analyze the 

effects of authorizing the limited 

collection of glaucous-winged gull eggs 

within Glacier Bay National Park by 

Hoonah Indian Association (HIA; the 

federally recognized government of the 

Huna Tlingit) tribal members. Glacier 

Bay is the traditional homeland of the 

Huna Tlingit who traditionally 

harvested eggs there prior to park 

establishment. The practice was 

curtailed in the 1960s, as the Migratory 

Bird Treaty Act and federal regulations 

prohibit it. In the late 1990s, at the 

behest of tribal leaders, the NPS agreed 

to explore ways to authorize this 

important cultural tradition. Section 4 

of the Glacier Bay National Park 

Resource Management Act of 2000 

directed the Secretary of Interior, in 

consultation with local residents, to 

assess whether gull eggs could be 

collected in Glacier Bay National Park 

on a limited basis without impairing the 

biological sustainability of the gull 

population. The Act further requires 

that the Secretary submit 

recommendations for legislation to 

Congress if the study determines that 

gull egg harvest could occur without 

impairing the biological sustainability of 

the park’s gull population. NPS 

commissioned ethnographic and 

biological studies to inform the analysis 

included in this LEIS. 

The NPS outlined a range of 

alternatives based on project objectives, 

park resources and values, and public 

input and analyzed the impacts each 

would have on the biological and 

human environment. 

Alternative 1: No Action: This 

alternative serves as a baseline for 

evaluating the impacts of the action 

alternatives. This alternative would not 

authorize the harvest of glaucouswinged gull eggs in Glacier Bay National 

Park. Glaucous-winged gulls would 

continue to breed in Glacier Bay 

without human disturbance. 

Alternative 2: This alternative would 

propose legislation to authorize the 

annual harvest of glaucous-winged gull 

eggs at up to two designated locations 

on a single pre-selected date on or 

before June 9 of each year. 

Alternative 3: NPS Preferred 

Alternative: Alternative 3 would 

propose legislation to authorize the 

annual harvest of glaucous-winged gull 

eggs at up to five designated locations 

in Glacier Bay National Park on two 

separate dates. A first harvest visit 

would be authorized to occur at each of 

the open sites on or before the 5th day 

following onset of laying as determined 

by NPS staff monitoring a reference site. 

A second harvest at the same sites 


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