Federal Register / Vol. 60, No. 45 / Wednesday, March 8, 1995 / Rules and Regulations 12711

of the Interior has determined that the

rule will not cause a taking of private

property.

The information collection

requirements contained in part 2720

have been approved by the Office of

Management and Budget under 44

U.S.C. 3501 et seq. and assigned

clearance number 1004–0153.

The Department has certified to the

Office of Management and Budget that

this rule meets the applicable standards

provided in Sections 2(a) and 2(b)(2) of

Executive Order 12778.

List of Subjects in 43 CFR Part 2720

Administrative practice and

procedure, Public lands-mineral

resources, Public lands-sale.

Dated: March 2, 1995.

Bob Armstrong,

Assistant Secretary of the Interior.

For the reasons stated in the

preamble, and under the authorities

stated below, part 2720 of Group 2700,

Subchapter B, Chapter II, Title 43 of the

Code of Federal Regulations is amended

as follows:

PART 2720—CONVEYANCE OF

FEDERALLY-OWNED MINERAL

INTERESTS

Subpart 2720—Conveyance of

Federally-Owned Mineral Interests

1. The authority citation for part 2720

is revised to read as follows:

Authority: 43 U.S.C. 1719 and 1740.

2. Section 2720.0–5(b) is revised to

read as follows:

§ 2720.0–5 Definitions.

* * * * *

(b) Known mineral values means

mineral rights in lands containing

geologic formations that are valuable in

the monetary sense for exploring,

developing, or producing natural

mineral deposits. The presence of such

mineral deposits with potential for

mineral development may be known

because of previous exploration, or may

be inferred based on geologic

information.

* * * * *

3. Section 2720.0–6 is amended by

revising the first sentence thereof to

read as follows:

§ 2720.0–6 Policy.

As required by the Federal Land

Policy and Management Act, the Bureau

of Land Management may convey a

federally owned mineral interest only

when the authorized officer determines

that it has no known mineral value, or

that the mineral reservation is

interfering with or precluding

appropriate nonmineral development of

the lands and that nonmineral

development is a more beneficial use

than mineral development. * * *

4. Section 2720.0–9 is added to read

as follows:

§ 2720.0–9 Information collection.

(a) The Office of Management and

Budget has approved under 44 U.S.C.

3507 the information collection

requirements contained in part 2720

and assigned clearance number 1004–

0153. The Bureau of Land Management

is collecting the information to permit

the authorized officer to determine

whether the Bureau of Land

Management should dispose of

Federally-owned mineral interests. The

Bureau of Land Management will use

the information collected to make these

determinations. A response is required

to obtain a benefit.

(b) The Bureau of Land Management

estimates the public reporting burden

for this information to average 8 hours

per response, including the time for

reviewing regulations, searching

existing data sources, gathering and

maintaining the data needed, and

completing and reviewing the collection

of information. Send comments

regarding this burden estimate or any

other aspect of this collection of

information, including suggestions for

reducing the burden, to the Information

Collection Clearance Officer (783),

Bureau of Land Management,

Washington, D.C. 20240, and the Office

of Management and Budget, Paperwork

Reduction Project, 1004–0153,

Washington, D.C. 20503.

5. Section 2720.1–3 is amended by

revising the concluding text of

paragraph (b) to read as follows:

§ 2720.1–3 Action on application.

* * * * *

(b) * * *

The authorized officer, in reaching a

determination as to whether there are

any known mineral values in the land

and, if so, the estimated costs of an

exploratory program, if one is needed,

will rely upon reports on minerals

prepared by or reviewed and approved

by the Bureau of Land Management.

* * * * *

6. Section 2720.2 is amended by

revising paragraph (b) and adding

paragraph (c) to read as follows:

§ 2720.2 Determination that an exploratory

program is not required.

(a) * * *

(b) The authorized officer will not

require an exploratory program to

ascertain the presence of mineral values

where the authorized officer determines

that a reasonable person would not

make exploration expenditures with

expectations of deriving economic gain

from the mineral production.

(c) The authorized officer will not

require an exploratory program if the

authorized officer determines that, for

the mineral interests covered by the

application, sufficient information is

available to determine their fair market

value.

7. Section 2720.3 is amended by

revising the fourth sentence of

paragraph (a), and paragraph (b) in its

entirety, to read as follows:

§ 2720.3 Action upon determination of the

fair market value of the mineral interests.

(a) * * * The notice must require the

applicant to pay both the fair market

value of the Federal mineral interests

and the remaining administrative costs

owed within 90 days after the date the

authorized officer mails the notice.

* * * * *

(b) The Bureau of Land Management

will convey mineral rights on lands for

which this part does not require an

exploratory program upon payment by

the applicant of fair market value for

those mineral interests and all

administrative costs of processing the

application to acquire the mineral

rights.

[FR Doc. 95–5626 Filed 3–7–95; 8:45 am]

BILLING CODE 4310–84–P

OFFICE OF MANAGEMENT AND

BUDGET

Office of Federal Procurement Policy

48 CFR Chapter 99

Cost Accounting Standards Board;

Interim Interpretation 95–01, Allocation

of Contractor Restructuring Costs

Under Defense Contracts

AGENCY: Cost Accounting Standards

Board, Office of Federal Procurement

Policy, OMB.

ACTION: Interpretation.

SUMMARY: The Cost Accounting

Standards Board is issuing an interim

interpretation designed to address

period cost assignment and allocability

criteria for restructuring costs incurred

under certain national defense

contracts.

DATES: Effective Date: August 15, 1994.

Comments on this interim interpretation

must be in writing and must be received

by May 8, 1995.

ADDRESSES: Comments upon this

interim interpretation should be
12712 Federal Register / Vol. 60, No. 45 / Wednesday, March 8, 1995 / Rules and Regulations

addressed to Richard C. Loeb, Executive

Secretary, Cost Accounting Standards

Board, Office of Federal Procurement

Policy, 725 17th Street, NW., Room

9001, Washington, DC 20503. ATTN:

CASB Interpretation 95–01.

FOR FURTHER INFORMATION CONTACT:

Richard C. Loeb, Executive Secretary,

Cost Accounting Standards Board

(telephone: 202–395–3254).

SUPPLEMENTARY INFORMATION:

A. Background

Section 818 of the National Defense

Authorization Act for Fiscal Year 1995,

Pub. L. 103–337, restricts the

Department of Defense from

reimbursing contractor restructuring

costs associated with a business

combination unless certain ‘‘net

savings’’ provisions are met. Questions

have arisen as to the methods to be used

in measuring, assigning and allocating

such restructuring costs. This interim

interpretation is designed to address

these questions. The Board would

appreciate receiving comments

concerning this interpretation.

B. Authority to Issue an Interpretation

Authority for issuance of this

interpretation is provided by 41 U.S.C.

422(f)(1) and 48 CFR 9901.302(b).

Richard C. Loeb,

Executive Secretary, Cost Accounting

Standards Board.

Cost Accounting Standards Board

Interim Interpretation 95–01,

‘‘Allocation of Contractor Restructuring

Costs Under Defense Contracts’’

(a) Questions have arisen as to the

appropriate methodologies to be used

for the allocation and period cost

assignment of contract costs categorized

or classified as ‘‘restructuring costs’’

under certain defense contracts. This

Interpretation applies to the provisions

of several Cost Accounting Standards,

including, but not limited to CAS

9904.403, 9904.404, 9904.406, 9904.409

and 9904.418, as they relate to

‘‘restructuring costs’’ associated with

CAS-covered contracts.

(b) ‘‘Restructuring costs’’ are incurred

after an entity decides to make a

significant nonrecurring change in its

business operations or structure in order

to reduce overall cost levels in future

periods through work force reductions,

the elimination of selected activities,

and/or the combination of ongoing

operations, including plant relocations.

Restructuring activities do not include

ongoing routine changes an entity

makes in its business operations or

organizational structure. Restructuring

costs are comprised both of direct and

indirect costs associated with contractor

restructuring activities taken after a

business combination is effected or after

an internal corporate restructuring

decision is made. Typical categories of

costs that have been included as

restructuring charges include severance

pay, early retirement incentive,

retraining, employee relocation, lease

cancellation, asset disposition and

write-offs, and relocation and

rearrangement of plant and equipment.

Restructuring costs do not include the

cost of such activities when they do not

relate either to business combinations or

significant nonrecurring internal

corporate restructuring decisions.

Generally, activities giving rise to

restructuring charges should normally

be completed within one year.

(c) The costs of betterments or

improvements of capital assets that

result from restructuring activities shall

be capitalized and depreciated in

accordance with the provisions of CAS

9904.404 and 9904.409.

(d) When a procuring agency imposes

a net savings requirement for the

payment of restructuring costs, the

contractor shall submit data specifying

(1) restructuring costs by period, (2)

restructuring savings by period (if

applicable), and (3) the methods by

which such costs shall be allocated.

(e) Under normal circumstances, most

categories of costs that qualify as

restructuring costs are recognized as

current period cost in the period in

which the cost is incurred. However, for

contractor restructuring costs defined

pursuant to this Interpretation, such

costs may be deferred, and subsequently

amortized, over a period during which

the benefits are expected to accrue. A

proposal to expense restructuring costs

in the current period is acceptable when

the Contracting Officer agrees that such

treatment will result in a more equitable

assignment of costs in the

circumstances.

(f) If a contractor incurs restructuring

costs but does not have an established

or disclosed cost accounting practice

covering such costs, the deferral of such

restructuring costs may be treated as the

initial adoption of a cost accounting

practice (see 9903.302–2(a)). If a

contractor incurs restructuring costs but

has an existing established or disclosed

cost accounting practice that does not

provide for deferring such costs, any

resulting change in cost accounting

practice to defer such costs may be

presumed to be desirable and not

detrimental to the interests of the

Government (see 9903.201–6). Changes

in cost accounting practices for

restructuring costs shall be subject to

disclosure statement revision

requirements (see CAS 9903.202–3), if

applicable.

(g) Measurement of cost impact on

existing CAS-covered contracts, shall be

the difference between an estimate to

complete before giving effect to the

restructuring, and, an estimate to

complete considering restructuring. The

estimates to complete shall be based on

the contractor’s compliant cost

accounting practices for the affected

cost accounting periods, from the

applicability date of the restructuring

plan through the end of the period

designated as the benefiting period.

(h) The amortization period for

deferred restructuring costs shall not

exceed five years. Straight line

amortization should normally be used,

unless another method results in a more

appropriate matching of cost to

expected benefits.

(i) Restructuring costs that are

deferred shall not be included in the

allocation based for cost of money

purposes (see CAS 9904.414). Deferred

charges are not tangible or intangible

capital assets and therefore are excluded

from the base for computation of

facilities capital cost of money.

(j) Restructuring costs incurred at a

home office level shall be treated in

accordance with the provisions of CAS

9904.403. Restructuring costs incurred

at the segment level that benefit more

than one segment should be allocated to

the home office and treated as home

office expense pursuant to CAS

9904.403. Restructuring costs incurred

at the segment level that benefit only

that segment shall be treated in

accordance with the provisions of CAS

9904.418. Restructuring costs that are

not considered to meet the homogeneity

requirements of CAS 9904.418 shall be

grouped in indirect cost pools that are

distinct from the contractor’s current

indirect cost pools.

(k) This Interpretation is applicable to

contractor ‘‘restructuring costs’’ paid or

approved on or after August 15, 1994.

[FR Doc. 95–5607 Filed 3–7–95; 8:45 am]

BILLING CODE 3110–01–M

ENVIRONMENTAL PROTECTION

AGENCY

48 CFR Part 1517

[FRL–5168–6]

Acquisition Regulation

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule.

SUMMARY: This document amends the

EPA Acquisition Regulation (EPAAR)